3 Reasons Phoenix’s Rental Market is Strong… and What it Means to Real Estate Owners and Investors

Experts and prospective tenants currently consider Phoenix, Arizona, one of the country’s best rental markets based on three reasons:

1. Would-be home buyers continue to struggle with obtaining financing, making a rental home their only option.
The lending belts have tightened significantly, making financing extremely difficult for first-time home buyers. Although some government plans and assistance programs exist to help, many buyers cannot get past the underwriting stages of the loan. Complicating the situation further is the fact that the least expensive properties are often quickly acquired by investors or others cash buyers. This leaves higher-priced inventory the only option, effectively pricing would-be buyers out of the market.
However, because rental prices dropped considerably after the market crashed and have stayed consistently flat, these people can find great properties in great neighborhoods—if they are willing to rent.

2. Many people who previously owned a home recently lost it to foreclosure or short-sale and now need an equivalent home to rent.
As previous home-owners, this group is rarely willing to consider downgrading to a lower-end neighborhood or moving into an apartment. But they must also face the truth that they won’t qualify for another home loan for at least three years. Because they are motivated to keep their children in the same schools and remain near friends and family, many people who recently lost their homes to foreclosure or short-sale want to stay in their same neighborhoods. These people hope to find a rental home similar to the one they lost for close to what they were paying on their mortgage. This makes many of the newer, nicer neighborhoods in town extremely appealing in the rental market.

3. 8,000-10,000 people relocate to the Valley of the Sun every month.
The growing number of people desiring to call Phoenix their home is a wonderful and consistent statistic for our market. People are fleeing the cold, snow and poor job markets of the mid-west and flocking to the Sunbelt and the Southwest. We have strong employment statistics, relatively inexpensive housing and rent prices, and, of course, wonderful weather! The greater Phoenix area has a diverse availability of properties of every size, shape and price range, making it an excellent location for tenants of all types and income levels.
And don’t forget the thousands of retirees and snowbirds who make Arizona their home for six months every year! They come for the great golf and other outdoor activities they can enjoy year-round in Phoenix because of the mild climate. But these people need homes while they are here, boosting the market for rentals even further.

What does this mean for the property owner or the investor?

Even with all the demand, the abundance of available properties in the Phoenix area keeps prices down while giving prospective tenants plenty of homes to choose from. Because of this, owners must do everything possible to make their property stand out. This may include performing some minor upgrades or repairs, offering special move-in incentives or reducing the price. The key is having someone available to effectively handle any leads and show the home quickly. In a competitive market, a professional property manager provides the services and mentoring needed to position your home for attracting great tenants, quick turns, and maximum rent.

Additionally, in a market as diverse and complex as Phoenix’s real estate and rental market, investors can rely on the expertise of a Phoenix investment expert to help choose the perfect properties for their individual portfolio needs and long-terms goals. An investment expert takes the guess-work out of the process and helps guarantee a great return on investment.

Now is a great time to rent out your existing Phoenix property, and an even better time to invest in the Phoenix market! Consider hiring a qualified property management company or real estate investment expert to help you make the most of your investment property in Phoenix.

2 Responses to “3 Reasons Phoenix’s Rental Market is Strong… and What it Means to Real Estate Owners and Investors”

  • Real Estate Investment Software

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