Single-family home rental prices continue to climb amid a recovering economy and insufficient inventory for the steady flow of people who continue to move to the Phoenix region every day.
Phoenix had the highest year-over-year increase in single-family rents in July, at 18.9%, followed by Miami with a gain of 17% and Las Vegas at 14.3% growth, according to the CoreLogic Single-Family Rent Index released Sept. 21. That compares with a national rent increase of 8.5% year-over-year, up from a 1.7% year-over-year increase in July 2020.
Despite topping the nation in rent growth, metro Phoenix’s median rent of around $1,830 for a 3-bedroom home still is relatively more affordable than in some other larger and more expensive metros across the country, said Selma Hepp, deputy chief economist for CoreLogic.
“As a result, population growth and demand for homes remains strong and keeps pushing Phoenix prices up,” she told the Phoenix Business Journal. “Interestingly, too, high-tier rental prices are growing at a faster pace than lower-priced rentals, suggesting that incoming rental demand is coming from higher-income renters, potentially baby boomers who are moving from other expensive markets.”
Occupancy levels for single-family rentals is above 95%, he said, but not quite as high as the 97% occupancy levels for apartments and wildly popular the build-to-rent units in metro Phoenix.
Read more: Phoenix again tops the nation in home price growth — a trend that is expected to continue.