Rent prices drop for third straight month, even in cities like Austin and Phoenix—here's where they fell most (2024)

FAQs

Are rent prices going down in Phoenix AZ? ›

Phoenix Rent Report: June 2023. Welcome to the Apartment List June 2023 Rent Report for Phoenix, AZ. Currently, the overall median rent in the city stands at $1,464, roughly the same as last month. Prices remain down 3.9% year-over-year.

PHOENIX — It's no secret that rents in the Valley have climbed over the past few years, but now new data shows a slight decrease in rent. Redfin's latest analysis found rents declined in Phoenix by about 2% from March 2022 to March 2023. That's the first annual drop since the pandemic started, according to Redfin.

Average rent across Central Texas was $1,683 in December, Heimsath's latest report found. That's up from $1,525 one year prior but down from $1,702 in June 2022, the outlet said. Heimsath believes average rent will drop an additional 5 percent by the end of the year.

The lowest rental rates are usually found between October and April, particularly right after the December holiday season. Fewer people are interested in moving—the weather's bad, schools are in session, etc. So individuals renting between the months of December and March typically find the best rental bargains.

For example, the Phoenix metro area is projected to experience a 0.9% decline in housing prices by the end of February 2023, followed by a further 1.6% decline by the end of April 2023. However, the market is expected to rebound slightly by the end of January 2024 with a 0.2% increase in prices.

Rent control is currently illegal under Arizona law. “The Arizona Chamber will oppose any attempts to impose a rent control scheme on property owners,” Seiden said.

While there's no consensus on what rents will do exactly in 2023 — go up a little, go down a little, or stay flat, according to three forecasts — what's clear is they are expected to return to more normal growth patterns, instead of the unsustainable, record rates seen in 2021 and 2022.

Arizona's housing supply is woefully inadequate for the population's needs, with a shortage of around 270,000 homes, according to the Arizona Department of Housing.

Arizona's Family got the report which forecasted 2023 and 2024 housing prices to fall the most in the West, where many mortgage payments claim half or more of a monthly income. Cities like Chicago and Philadelphia should see increases instead, although they're expected to be nominal when comparing income.

The average rent for apartments in Austin, TX, is between $999 and $1,912 in 2023.

Why is rent in Austin so high? ›

Couple that with the supply chain issues, the influx of high earners moving to the city and increased mortgage rates forcing potential buyers to rent, you end up with rent prices spiking. "Some rental home prices are increasing due to the recent tax increases that we're going to see on investment homes," said Doggett.

The Austin market is “arguably the largest housing bubble in America based on the fundamental data,” Reventure Consulting CEO Nicholas Gerli said in May. While it takes about five years for a market to crash, Gerli predicted a 30 percent to 40 percent decline in home prices in Austin over the next three years.

In general, rents tended to be lower during the winter. The “best” months to rent are between December and March (during the winter). Conversely, the “worst” months are between May and October (during the summer).

The day of the week

If you want to rent from the hottest complex in town, be strategic about the day you apply. If you want the best deal, apply for your apartment on Monday or Friday. If you apply on Tuesday or Sunday, you might pay more.

The short answer is, yes. You can negotiate your rent. When you're renting an apartment, the price you pay isn't set in stone. But before you even consider negotiating, you need to make sure you know why you're asking for a discount.

In 2022, the Phoenix housing market was characterized by rising median home prices, low supply, and above-average demand. Still, Phoenix remained affordable when compared to larger cities. Home prices in Phoenix were $100,000 below the average home prices in LA, Seattle, and even Denver.

It's also worth noting that while foreclosure rates are up year-over-year, experts do not expect to see a wave of foreclosures in 2023, even where home values are depreciating, as many homeowners have substantial equity due to progressive home price appreciation in recent years.

Credible analysis shows that rent in metro Phoenix increased about 6.5 percent between September 2021 and September 2022. That's below the national average of a 9.5 percent increase. The increase in rent is being driven by two major factors: The law of supply and demand and skyrocketing inflation.

No, there aren't any rent control laws in Arizona at the moment. Arizona laws prevent local governments to impose rent control laws, which gives landlords much more freedom when managing their week-to-week or month-to-month tenancy agreements.

Population growth is one reason why rent is increasing. However, she says that because the rents are rising that population growth could slow. Phoenix also saw a lot of job growth, which enticed more people to move here.

Can you negotiate rent in Arizona? ›

Yes. You can negotiate rent with your landlord or property manager under the right circ*mstances.

Just because there's a recession doesn't necessarily mean rent prices go down. In fact, during the 2008 recession, it was the exact opposite. In the current rental market, we have seen the rate of increase in rental prices come down, but this only translates to lower rent prices if you're in select markets.

There is a shortage of 7.3 million affordable and available rental homes for renters with extremely low incomes in the US, up 8 percent from 6.8 million in 2019. The lack of housing options for renters with extremely low incomes are driving the overall affordable housing shortage across the country.

At this time, the Texas Rent Relief program has committed all available funds and is now closed. During the recent re-opening of the application portal on March 14, 2023, requests for assistance far exceeded available funding within the first 24 hours.

The ARMLS Pending Price Index is projecting the median sales price will rise ever so slightly to $420,000 in April 2023. If projections are correct, the median sales price will be 11.58% lower than May 2022's record high of $475,000. The year-over-year median sales price is expected to be 10.64% lower.

As of January 2022, the number of people experiencing homelessness in Arizona was 13,553, an increase of nearly 25% since 2020. The Homeless population has steadily risen in Arizona since 2017, with Unsheltered homelessness increasing by 62% since 2012.

41 among hottest housing markets. After two years of stiff competition and fast-rising prices, the residential housing market in the U.S. began cooling quickly over the second half of 2022 and beginning of 2023.

Homeowners owe more on their mortgages than their homes were worth and can no longer just flip their way out of their homes if they cannot make the new, higher payments. Instead, they will lose their homes to foreclosure and often file for bankruptcy in the process.

Lower Home Prices. Some experts predict that due to low inventory, home prices won't drop in 2023. While others believe that due to the higher interest rates, sellers will lower their prices to current levels. Home values are expected to go down by 5% to 10% due to unaffordability.

What will happen to Austin housing market in 2023? ›

Austin-Round Rock Metro's home values are expected to drop by 1.4% between March 2023 and March 2024. According to their forecast, the supply and demand dynamics will likely push down prices over the next 12 months.

Nationally, 81% of properties were cheaper to rent. In Austin, Texas, 95% of properties were cheaper to rent than own.

There is no statewide rent increase limit in Texas, which means landlords are legally allowed to raise the rent as much as they like. Tenants can renegotiate or find other housing, but no legislation limits how much landlords can charge in rent.

AUSTIN, Texas — A new study has found that people in the millennial age group are moving to Austin the most out of any U.S. city. A study by the personal finance website SmartAsset found Austin has a strong economy and standard of living that together are acting like a magnet for those of working age.

Austin is a popular place to move to due to its thriving job market and lower cost of living compared to other major tech hubs like San Francisco and New York City. Additionally, Austin is known for its world-renowned live music scene, festivals, outdoor activities, and unique local cuisine.

The rapid influx of tourists to Austin each year, magnetized by its vibrant nightlife, live music, and remarkable outdoor entertainment, has resulted in an exponential increase in living expenses, which are now beyond the means of those with smaller incomes.

Median home prices in the Central Austin region also dipped about 10% year over year from $795,000 in March 2022 to $700,000 last month.

As of April 2023, the median salary in Austin, TX is $58,000, with 80% of salaries falling between $31,200 and $144,000.

In Austin, the study found that a single adult would need to be making $55,186 after taxes. If you were in a couple and only 1 adult worked, you would need to make $87,314. The income increases per child and per partner situation.

Most leases and rental agreements call for rent to be paid monthly, in advance, on the first day of the month. However, landlords are normally legally free to establish a different monthly payment date—or even to require that rent be paid weekly or bimonthly.

What day of the month is best to pay rent? ›

Customarily, the rent is due for the entire lease term, in equal payments, on the first day of each month. Defining the rent due date on the first day of each month creates a comfort zone to the landlord.

Research shows that the best days of the week to rent an apartment are Mondays and Fridays. Additionally, the most expensive days to rent an apartment are Sundays and Tuesdays. We also recommend trying to rent at the beginning of the day between 9am and 10am for the best prices.

Advantages. Typically, summer is the best time of year to move into an apartment. However, May through September usually have more options to choose from because current leases begin to end. Families also tend to move when their kids are on summer break and have more time off.

Most leases expire at the end of the month and require notice 30 days before leaving. Start looking around that time, and you'll find apartments right as they're going on the market. If you want to move in December, start looking in the last couple of weeks of November.

Renters are seeing their housing costs jump as population increases, strict zoning regulations and rising home sales push up rent prices.

The lowest rental rates are usually found between October and April, particularly right after the December holiday season. Fewer people are interested in moving—the weather's bad, schools are in session, etc. So individuals renting between the months of December and March typically find the best rental bargains.

A new study from Rent.com shows the price for rent has dropped 4% in the last year, making it the 4th largest drop in the country. PHOENIX (3TV/CBS 5) -- Rent prices around the Valley are dropping currently.

Credible analysis shows that rent in metro Phoenix increased about 6.5 percent between September 2021 and September 2022. That's below the national average of a 9.5 percent increase. The increase in rent is being driven by two major factors: The law of supply and demand and skyrocketing inflation.

Will Arizona apartment prices drop? ›

Arizona's Family got the report which forecasted 2023 and 2024 housing prices to fall the most in the West, where many mortgage payments claim half or more of a monthly income. Cities like Chicago and Philadelphia should see increases instead, although they're expected to be nominal when comparing income.

Behind the recent dips in rents are an increase in apartment vacancies and the construction of new complexes. Metro Phoenix's rental vacancy rate climbed to 6% during this year's first quarter, according to ABI Multifamily. That's up from 4.5% a year ago.

Median Home Price in Phoenix

For buyers, a growing timeline of homes for sale in the latter half of 2022 helped to lower prices, with the median sales price falling 4.5% year-over-year in January to $425,000.

Zillow predicts that Phoenix metro home values may drop by 1.0% between March 2023 to March 2024.

MacEwan said research by the City of Phoenix found a shortage of around 100,000 affordable rental units back in 2020. "The challenge is affordable housing is not easy to build, and it also cannot be done overnight," MacEwan said. Regulations and costs make building affordable units can be difficult.

The reason houses in Arizona are so expensive is that there's a high demand for housing. This is because Arizona is a rapidly growing state with more people moving there every year. Retirees especially love Arizona because of the warm weather and affordable living.

“The major reason why Phoenix's inflation rate is running so much faster than the national average, is what's going on in the housing market,” Hammond said. “Housing is by far the biggest single category in the price index, so it has a huge influence on what happens.”

1. Downtown Phoenix. With a median home price of $524,921 and a median rent of $1,098, Downtown Phoenix is the most expensive neighborhood on our list.

No, there aren't any rent control laws in Arizona at the moment. Arizona laws prevent local governments to impose rent control laws, which gives landlords much more freedom when managing their week-to-week or month-to-month tenancy agreements.

Rents are rising faster in metro Phoenix because the area is growing faster. Real estate firm Redfin's research shows Phoenix gained 85,000 new residents last year, more than any other U.S. city.

What is the rental vacancy rate in Austin? ›

Among Austin residents, there is a homeowner vacancy rate of 1.2% and a rental vacancy rate of 6.2% from a total of 393,616 units.

Arizona is landlord-friendly because tenants cannot withhold rent for any reason. If a tenant in Arizona fails to pay rent, their landlord may deliver a five-day notice to pay or move out. If the tenant does not pay the landlord within five days, then the landlord can file an eviction lawsuit against the tenant.