By Rich La Rue
Rent prices have been soaring, especially in popular cities like Tempe, Arizona. According to Bloomberg, the average rent for a one-bedroom in Tempe was $1,703 in June, a 48.3% increase from 2021. Renting can provide flexibility, but it may not always be the cheapest option. Here is what you should know about the current renter’s market.
Costs Remain Steep
Both rental and buyers’ markets have shown signs of cooling off in the last few months. According to Zillow, the asking rent growth streak fell 0.1% month-over-month marking the first monthly decline in two years. However, prices are still high at 9.6% above levels in 2021.
In the Valley, the average rent for a one-bedroom apartment has decreased by 9% month-over-month. However, the housing market remains slightly hot, and renting is a common option for those looking to settle in the Phoenix area. Therefore, the downturn is not expected to last long as Arizona is a popular destination for snowbirds and the attractive migration spot could experience an inventory reduction over the winter.
Affordability in Phoenix Metro Cities
Maricopa County has seen high rental prices over the last year. According to Zillow, the median price for a one-bedroom apartment in Scottsdale is more than $1,800, which is 12% higher than national numbers. Here’s how that compares to the midpoint in other Valley cities:
Avondale: $1,424, 15% below national median
Chandler: $1,615, 3% below national median
Gilbert: $1,685, 0.89% below national median
Glendale: $1,345, 19% below national median
Mesa: $1,350, 19% below national median
Phoenix: $1,395, 16% below national median
Tempe: $1,431, 14% below national median
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