According to Pierce Eislen, a Scottsdale market-research firm for the apartment industry, metro Phoenix apartment rental rates were up 4.3 percent in October over the same period a year ago. The average base rent was $697, up from $670 the previous October. <\/p>\n
Rents had not risen significantly since 2001, said Ron Brock, Jr., vice president at Pierce Eislen. <\/p>\n
Moreover, the number of apartments offering rental incentives dropped from 80 percent in 2004 to 43 percent this year through October, Pierce Eislen reported.<\/p>\n
Several factors are converging to put the rental market in a better position to raise rents and drop concessions. <\/p>\n
First, condo conversions are diminishing the stock of conventional apartment units faster than new stock is being built. <\/p>\n
Second, the high median price of homes in the Valley is keeping many from owning their own home. And third, high land and construction costs are keeping apartment developers from building as many units as they traditionally have.<\/p><\/blockquote>\n
Rents have been flat in the Phoenix market for a long time, but the same dyanmic–not static–market comes into play: If a 900sf three-bedroom apartment rents for $1,050 a month, how much more is a 1,400sf three-bedroom home worth? It’s the competitive marketplace that ‘decides,’ ultimately, supply and demand. But through all of this, the supply of would-have-been home-buyers, tenants-for-now, is steadily increasing.<\/p>\n","protected":false},"excerpt":{"rendered":"
In the midst of the appreciation boom in Phoenix, one of the regular Chicken Little complaints was that investors would cause a glut of rental housing, which would then sit vacant until they sold the homes in desperation. This is the static-market fallacy: This change will cause a problem, after which no change will ever […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":{"0":"post-15","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-general","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":115,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/115\/apartment-rental-rates-in-valley-surge\/","url_meta":{"origin":15,"position":0},"title":"Apartment-rental rates in Valley surge","author":"Greg Swann","date":"July 21, 2006","format":false,"excerpt":"I was wrong. The Republic did cover the increase in apartment rents corresponding to a drop in vacancy rates. And only two days later than the Las Vegas Review-Journal. Technorati Tags: arizona, arizona real estate, phoenix, phoenix real estate, real estate","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":108,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/108\/phoenix-apartment-rents-up-74\/","url_meta":{"origin":15,"position":1},"title":"Phoenix apartment rents up 7.4%","author":"Greg Swann","date":"July 20, 2006","format":false,"excerpt":"Site cite: Las Vegas Review-Journal. Rents are up and vacancies are down across the board in rental housing. The Republic could take notice, except it's too busy telling itself that real estate investors cannot possibly know what they're doing. Technorati Tags: arizona, arizona real estate, phoenix, phoenix real estate, real\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3952,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3952\/give-me-your-money-part-ii-emergent-investment-opportunities-in-the-recovering-real-estate-market\/","url_meta":{"origin":15,"position":2},"title":"Give me your money, Part II: Emergent investment opportunities in the recovering real estate market","author":"Greg Swann","date":"August 17, 2008","format":false,"excerpt":"Last Tuesday I met with a potential real estate investor. She's an investor because she's got the money, the credit and the will to dip her toe in the water. She's a potential investor because she has never yet been a landlord. That's okay. I've worked with many potential investors,\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":17650,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/17650\/overnight-news-whats-hypothecation-its-how-you-turn-a-detached-apartment-in-a-single-family-residence\/","url_meta":{"origin":15,"position":3},"title":"Overnight News: What\u2019s hypothecation? It\u2019s how you turn a detached apartment into a single-family residence.","author":"Greg Swann","date":"December 28, 2020","format":false,"excerpt":"Brian Brady fingered the link on brand new rental communities pitching detached apartments as SFRs for lease. We have these in Phoenix, too, though I have never toured them. They look to be 1,200sf homes on 1,400sf parcels \u2013 except of course they aren't parcels \u2013 yet. When the market\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"Ya think it's easy?","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/08\/BHBNewTopImage-300x225.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":3253,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3253\/investors-are-coming-back-to-the-phoenix-rental-home-market-and-with-the-right-business-plan-theyll-make-money\/","url_meta":{"origin":15,"position":4},"title":"Investors are coming back to the Phoenix rental home market — and with the right business plan they’ll make money","author":"Greg Swann","date":"June 21, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). \u00a0Investors are coming back to the Phoenix rental home market -- and with the right business plan they'll make money Rental home investors are coming back into the Phoenix real estate market, and this is a good\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2793,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2793\/your-rental-home-in-phoenix-will-generate-positive-cash-flow-but-will-it-appreciate-significantly-in-the-coming-years\/","url_meta":{"origin":15,"position":5},"title":"Your rental home in Phoenix will generate positive cash flow — but will it appreciate significantly in the coming years?","author":"Greg Swann","date":"March 18, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link): \u00a0Your rental home in Phoenix will generate positive cash flow -- but will it appreciate significantly in the coming years? It's still a buyer's market out there, but is it an investor's market? 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