The leasing market of detached homes in Greater Phoenix, at least in Phoenix, Scottsdale, and Tempe is picking up.  The calls are rolling in the a lot of properties disappear quickly from the market.  It is this, so called shadow market for the multifamily property owned that is increasing their vacancy and rental rates. 

There are a lot of home for rent on the market but since prices have kept almost level over the last 2 years, the real rates have dropped, despite a slight increase in rental rates.

Here is the breakdown for the single family home rental market in Phoenix, Tempe and Scottsdale.

1. There are 873 active rental homes in Phoenix.  They have been on the market an average of 60 days.  Since January 2008, 1,923 home have been leased out with an average of 54 days on the market.

2. In Scottsdale there are 943 homes for lease and the leased homes have been on the market an average of 74 days on the market.  The Scottsdale numbers don't really reflect the reality because there are many more home proportionally to other cities that are on the market all the time, they are simply short term rentals.

3. Tempe homes leased out in an average of 46 days, 228 of them leased since January 2008.  There are 68 active homes and they have been on the market an average of 42 days.

Now about this "shadow market".  Usually as the sales of home decrease due to price, foreclosures etc. the rental apartment market picks up.  This has not happened in Phoenix primarily because the very large supply of rental homes.  Many of these homes compete in price range with the larger apartments.  Its not surprising that someone may choose, an often band new, house over an apartment.  This pool or rental homes that competes with apartments is the shadow market, in simple terms.

If you would like some of this data for other cities in Greater Phoenix just drop us a note.