Phoenix has seen a burst in growth over the last few years with its burgeoning financial industry and influx of tech startups. As the amount of apartment complexes continues to increase in the Phoenix area, so does the cost of living there.
This past February, the average rent that a Phoenix resident pays each month reached a new all-time high. According to Axiometrics, who are an analytics firm that specializes in apartment and student housing, tenants in the Phoenix area are paying $976 a month compared to last year’s record high of $935.
Phoenix landlords are cashing in on the boom happening in Phoenix, as the city has a 94.6 percent occupancy rate. Landlords have witnessed a 4.4 percent increase of effective rent growth, as the average price of rent increased by $8 this past February.
Although Phoenix’s rent prices have increased, they are still far below the national average. Across the country, rents average at $1,285 a month. Nationally, there has been a rent growth of 2.3 percent. On average, the nation has a similar occupancy rate to Phoenix at 94.5 percent.
Senior Vice President of Analytics for Axiometrics, Jay Denton, spoke on the matter, stating, “Job growth rebounded to 2.4 percent for the 12 months ending in January, and is predicted to stay near 2 percent this year. That steady level of demand should keep market performance strong, though new supply coming in later this year will cause growth to slow.”
Efficient rent growth is estimated to hit 3.5 percent in the Phoenix market, according to a forecast conducted by Axiometrics. The company further determined the top five submarkets in Phoenix February of 2017’s annual effective rent growth:
Central Phoenix North: 8.1 percent
Glendale South: 8.1 percent
Maryvale: 7.3 percent
Sunnyslope: 7.1 percent
South Mesa: 7 percent