Categorized | Residential

Apartment Rental Market in Phoenix Sees Decline

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While some cities around the country and enjoying a boom in both rental prices, and the number of people looking to rent, the city of Phoenix is not sharing their success. In what is the first major decline in monthly rent and occupancy rate in Phoenix since 2009, the average rent has dropped almost $100 to $718 per month. The vacancy rate has risen to nearly 10%, which is a one percent increase.

Investors are attributing part of the decline to what is referred to as a seasonal shift, as most students are leaving the area for summer break. Many investors believe that the decreases will be temporary, and the trend will soon reverse when school resumes in the fall. In fact, some investors have gone as far as saying that the apartment properties outlook is still quite strong despite the drops.

Despite the relative positive perspective taken by some investors, others have emphasized that the numbers are indicative of the challenges that exist in the apartment property real estate market. These investors worry that, due to the dismal job market, apartment property owners could see the numbers drop even further. Many landlords are reporting problems with late rent payments, as tenants are forced to spend their rent money on things like gasoline and utilities.

Those that continue to remain positive about the state of the apartment rental real estate market have a much different outlook. They believe that rental properties will payoff sooner than later as people see renting as a more viable option than owning a house.

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About Josh Johnson

Josh is the main writer for the Residential category. He also helps out on other categories when needed, mainly the International section.

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