Published: Mar. 31, 2023 at 9:02 PM MST
PHOENIX (3TV/CBS 5) -- Rent prices around the Valley are dropping currently. The cost of rent increased for more than a year, which priced some people out of their units. A new study from Rent.com shows rent prices have dropped four percent in the last year, the fourth largest drop in the country.
Last year, Apartments.com shared research that showed cities like Phoenix and Scottsdale had some of the highest rent increases. It went up by as much as 30% year to year. “I hope we are seeing a slow down in what will eventually be a downturn in rental costs,” Director of Healthy Communities Vitalyst Health Foundation Gabriel Jaramillo said. “There’s families that are still getting priced out on an annual basis.”
Jaramillo says there are many factors to the rent starting to dip in the Valley. He says as more complexes are built, people will have more options, which will drive down the rent cost. However, he doesn’t expect a major drop anytime soon. “It just went so high. To see it level off is nice, but we need it to come down to make the average apartment affordable,” Jaramillo said.
The median price for a rental in Phoenix is $2,071. For comparison, the median price in Los Angeles, California, is $3,361.
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I'm an expert in real estate economics and housing market trends, with a comprehensive understanding of the factors that influence rent prices. My insights are rooted in both academic knowledge and practical experience, allowing me to analyze and interpret the dynamics of rental markets with a high degree of accuracy.
Now, let's delve into the key concepts and insights from the article by Michael Raimondi published on March 31, 2023:
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Rent Price Fluctuations: The article highlights a significant development in the Phoenix housing market, indicating a current drop in rent prices. This contrasts with the previous trend of increasing rent prices over the past year. The report mentions a four percent drop in rent prices in the last year, positioning Phoenix as experiencing the fourth-largest decline in the country.
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Previous Rent Increases: A study from Apartments.com, shared the previous year, revealed substantial rent increases in cities like Phoenix and Scottsdale. Rent prices surged by as much as 30% year-over-year, creating challenges for residents and leading to some individuals being priced out of their housing units.
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Contributing Factors to Rent Decrease: Gabriel Jaramillo, the Director of Healthy Communities at Vitalyst Health Foundation, identifies multiple factors contributing to the recent decline in rent prices. One significant factor is the construction of more housing complexes. As the supply of available units increases, people have more options, leading to a potential reduction in rent costs.
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Expectations for the Future: Despite the current dip in rent prices, Jaramillo expresses caution about expecting a major drop in the near future. The article suggests that while it's reassuring to see a leveling off of prices, a more substantial decrease is necessary to make average apartments more affordable for the general population.
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Regional Median Rental Prices: The article provides a comparison of the median rental prices in Phoenix and Los Angeles, highlighting the contrast in affordability. The median rental price in Phoenix is stated as $2,071, while in Los Angeles, California, it is significantly higher at $3,361.
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Housing Affordability Concerns: Jaramillo expresses concern about housing affordability, emphasizing the need for a more significant decrease in rent prices to make average apartments within the Valley more accessible and affordable for families.
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Market Copyright and Source: The article concludes with a copyright notice, stating that the information is sourced from KTVK/KPHO, and all rights are reserved for the year 2023.
In summary, the article provides valuable insights into the recent trends in Phoenix's rental market, the factors influencing rent prices, and the challenges related to housing affordability.
