Another Source Declares Rental Rates to Increase in Phoenix This Year!
Good Morning....
On the MSN Homepage today, one of the feature stories is titled, "Why You'll Pay More in Rent This Year". Read the full article here. Or, if you'd just like the highlights, read on:
"If rent money is harder to come by, blame it on the hottest rental market in five years. The average rent climbed to $940 in the fourth quarter of 2005, according to real estate data firm M/PF YieldStar. And this year, it’s going to be even more expensive as rents recover from historically low levels.
"2006 should be the big price correction," for rents, said Greg Willett, vice president of research at Carrolton, Texas-based M/PF. "Everything is really underpriced in many markets around the U.S."
"National apartment occupancy rose 1.6% to 95.2% in last year’s fourth quarter, the highest point since the fall of 2001. Rising home costs, coupled with an increase in new job creation, is creating a bigger pool of renters, Willett said. But in many areas, the number of apartments is dwindling, as building has failed to keep pace."...
...."Other cities where M/PF’s Willett expects to see big jumps in occupancy and rent this year include Austin, Texas; Las Vegas, Nev.; and Phoenix, Ariz, where apartment construction was lapped by demand. Jobs in these cities are growing at a fast pace and home prices are rising quickly, making the limited stock of apartments more appealing.
"The fact that home prices have climbed so much has widened that gap (between renting and owning) again,” Willett said. "This is the most optimistic I've seen (landlords) in a long time."
So, allow us to remind you:
If you are a renter, expect to pay more this year in rent. That means making your landlord even wealthier, having less disposable income yourself, and missing out on potential tax advantages and home appreciation.
If you are - or would like to become - an investor, with the right property you should be able to cash-flow your rents once again. With a dwindling number of apartments/rental properties, it's the old "supply/demand" formula working to your advantage! The condo conversion pace is only strengthening investors' positions, by taking rental units out of the market!
Regardless of your position, we are ready to represent you in the purchase of your next property AT NO COST TO YOU! Please contact us @ info@weareazrealestate.com, or 480-483-3333.
Sharon Kotula, ABR
Adam Tarr, ePRO
RE/MAX Excalibur
Scottsdale, AZ
YOUR PHOENIX AREA REAL ESTATE SOURCE