Apartment rents keep on risin'
by Kaushik Sirkar, Chandler AZ REALTOR
Chandler Arizona Real Estate
This article was in today's Arizona Republic. What does it say? Rents have been rising. And they will contiue to rise. Multiunit properties - sales are on the up especially as the condo-conversion madness has ceased. the first 4 months of this year saw 48 transactions involving complexes with > 100 units. All of 06' saw a total of 64 sales. So investors appear to be hitting this particular market HARD. As rents rise with the larger multi-unit homes, there will likely be a trickle to the smaller properties more likely to be owned by individual investors. And potentially, over a much longer time frame, rising rents may push more people towards purchasing.
Why multiunit properties in Phoenix? A few reasons...
- Jobs + Population Growth - The job market is excellent here and people continue to move here!
- Lack of New Construction - New multi-unit properties aren't being built at the clip they once were. Why? Higher construction costs and competition for fewer pockets of land.
- Renters will pay in Phoenix! - Rents in Phoenix ($805) are a little lower on average than Las Vegas ($870) and almost 1/2 the average rents in Los Angeles ($1500).
Maybe its a good time to be purchasing multi-unit rental property? You decide....
Thanks for Reading :)
Kaushik Sirkar, Chandler AZ REALTOR
http://www.homesphx.com
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I've been wondering if the rents in Flagstaff can keep going up. We've had three major apartment complexes convert to condos in the last year, putting a lot of pressure on rents. On the other hand, some of these are returning to the rental market as investment properties AND would-be sellers are deciding to rent for a year or two, if they can, to wait for better sale prices. Further, our average rent price is higher than in the Phoenix area already, with a lower wage rate. What a conundrum.