Below is a chart with a lot of information. It's data that can be used by a buyer but more so an investor in single family homes in Greater Phoenix. If you have questions such as: - How many homes lease in a "city"? and what is the supply of rental homes?
- What is the rental rate in a "city"? and how does the asking price compare to the leased price?
- How many homes are for sale compared to homes for lease and what is the average sold price and how many homes sold?
You should be able to answer a lot of question using this data. If you do have any questions please don't hesitate to contact us. Cities are listed in order of total supply in months from lowest supply on top. | City | Avg. List $/SF | Leased per month | Leased $/SF | Months Supply | Total Rental Supply | Sales Average $/SF | Homes For Sale | Homes Sold | Avg. Sold Price | | Goodyear | $0.68 | 68 | $0.60 | 1.7 | 116 | $97.74 | 897 | 154 | $213,000 | | Avondale | $0.58 | 72 | $0.56 | 1.8 | 130 | $84.00 | 966 | 142 | $168,000 | | Gilbert | $0.74 | 160 | $0.67 | 1.9 | 304 | $119.12 | 2,133 | 360 | $277,000 | | Tolleson | $0.62 | 16 | $0.52 | 1.9 | 31 | $77.89 | 485 | 85 | $161,000 | | Litchfield Park | $0.63 | 36 | $0.57 | 1.9 | 68 | $95.57 | 435 | 63 | $272,000 | | Tempe | $1.01 | 114 | $0.84 | 2.1 | 240 | $153.71 | 548 | 91 | $271,000 | | Peoria | $0.73 | 113 | $0.64 | 2.2 | 249 | $113.34 | 1,682 | 226 | $249,000 | | Anthem | $0.70 | 62 | $0.59 | 2.3 | 143 | $112.36 | 443 | 82 | $277,000 | | Chandler | $0.77 | 174 | $0.68 | 2.4 | 418 | $130.75 | 1,875 | 317 | $292,000 | | Queen Creek | $0.57 | 93 | $0.50 | 2.5 | 233 | $75.74 | 1,742 | 369 | $173,000 | | Maricopa | $0.48 | 51 | $0.47 | 2.5 | 128 | $63.99 | 856 | 130 | $147,000 | | Surprise | $0.69 | 130 | $0.56 | 2.6 | 338 | $88.44 | 1,584 | 288 | $193,000 | | Glendale | $0.77 | 100 | $0.69 | 2.7 | 270 | $107.56 | 2,168 | 296 | $208,000 | | Laveen | $0.59 | 19 | $0.54 | 2.7 | 51 | $88.61 | 488 | 75 | $203,000 | | Buckeye | $0.60 | 56 | $0.50 | 2.9 | 163 | $78.78 | 1,142 | 139 | $168,000 | | Mesa | $0.75 | 170 | $0.69 | 2.9 | 493 | $115.47 | 3,355 | 426 | $213,000 | | Gold Canyon | $0.80 | 12 | $0.62 | 3.9 | 47 | $197.69 | 269 | 24 | $355,000 | | Phoenix | $0.93 | 456 | $0.76 | 4.1 | 1,870 | $122.85 | 10,995 | 1179 | $215,000 | | Cave Creek | $0.93 | 18 | $0.74 | 5.0 | 90 | $196.94 | 511 | 43 | $436,000 | | Casa Grande | $0.53 | 5 | $0.48 | 5.4 | 27 | $71.03 | 543 | 77 | $158,000 | | Sun City | $0.61 | 10 | $0.58 | 5.5 | 55 | $100.92 | | 55 | $166,000 | | Scottsdale | $1.27 | 332 | $0.95 | 6.7 | 2,224 | $224.77 | 499 | 293 | $635,000 | | El Mirage | $0.60 | 9 | $0.61 | 7.4 | 67 | $74.73 | 479 | 83 | $126,000 | | Sun Lakes | $0.80 | 4 | $0.58 | 9.3 | 37 | $130.43 | 154 | 18 | $254,000 | | Fountain Hills | $1.22 | 19 | $0.79 | 9.5 | 181 | $203.65 | 480 | 28 | $468,000 | | Apache Junction | $0.73 | 3 | $0.66 | 15 | 45 | $96.78 | 485 | 40 | $137,000 | | Paradise Valley | $1.45 | 4 | $1.00 | 16.5 | 66 | $425.73 | 460 | 17 | $2,035,000 | | Arizona City | $0.54 | 1 | $0.58 | 28 | 28 | $66.99 | 222 | 21 | $87,000 |
(All data is from the ARMLS, processed by The Cromford Report and graphed by Artur Ciesielski, CCIM) The rental market in Phoenix has experienced a decline in rental rates. It's clear from the data above and from our practical experience that what homes rent for now has declined compared to a year ago and a few months ago. This is a result of the increased competition for tenants. While the overall supply seems low at around 2 months its actually high compared to what is should be. Recently more people have been buying homes, especially in the starter home category. It's these buyers who usually move out of a rental home into one they purchased. Prospective tenants seem to be more savvy as well. Where as before rents were what the lessor asked while now lessees have a tendency to negotiate on the lease rate often pushing it down. Overall it's not difficult to lease a home which is priced for the market, advertised properly and managed well. Such homes usually lease within a few weeks. It's difficult to say which direction the rental market will go but I suspect that lease rates will not go down and if so it won't be much. It also depends on the area. In some cities the supply is very large, like Casa Grande, Sun City, Fountain Hills, and so on, while the supply is low in Gilbert, Tempe and Goodyear. Scottsdale is a curious example because there are a lot of homes which simply stay on the market all the time. There will probably be some pressure on prices to increase in the central cities and in in-demand schools districts. These are the areas which lease best and make for very good investment areas as well, displaying characteristics of ideal rental homes which are very similar to what a home buyer would want, except for the fact that most renters want a more central location. |
