Metro Phoenix rents dipped in all but one city — Tempe
Metro Phoenix renters could get a break when they sign a lease now. ● After leading the U.S. for rent increases in 2021 and early 2022, the Valley is now nearly leading the nation for drops in what tenants pay landlords. ● The average rent in the Phoenix area is down more than 3% from July 2022, according to research firm Yardi Matrix. Only Las Vegas had a bigger drop with a 3.5% rent dip. ● Tenant advocates say now is the time to negotiate in many areas of the Valley, but not all. Two years ago, there was little chance of getting a better rent deal as monthly apartment costs skyrocketed 30%. ● Airbnb has also delved into the apartment rent mix with a program that lets tenants at some Phoenix-area apartment buildings sublease to people for short terms to make some cash. But it depends on the area of the Valley and the complexes whether renters can find deals for the apartments. ● Metro Phoenix’s overall average rent was $1,633 at the end of June, reports ABI Multifamily. That’s $40 less than a year ago. The average rent is for all apartments. One- and two-bedroom units make up about 70% of metro Phoenix rentals.
Where to find some of the best apartment deals in the Valley
Mesa posted the biggest average rent drop among metro Phoenix’s five biggest cities. The monthly cost of an apartment fell 3% to $1,515 during the past year, according to ABI.
Scottsdale is one of Arizona’s priciest areas to lease, but the average rent is down 1.5% to $2,065.
Phoenix renters saw a 1.1% dip in what they owe landlords. The average rent in the U.S.’s fifth biggest city is $1,559.
Glendale, the most affordable of the five, posted a 1% decrease to $1,494.
Tempe was only one of the five to see a slight increase. The city — home to ASU’s main campus and many student renters — saw rents tick up almost 1% to $1,913.
All the cities, except Scottsdale, saw apartment vacancy rates dip slightly during the past year. Scottsdale’s vacancy was flat.
Airbnb apartments available at 17 complexes
The online vacation rental site Airbnb got into the apartment market last fall by working with landlords that will allow their tenants with 12month leases to sublet through the platform.
Now, 17 Valley apartment complexes spanning from south Scottsdale to south and west Phoenix and Ahwatukee and Chandler in the East Valley are part of the program.
The most expensive metro Phoenix “Airbnb-friendly” apartment starts at $2,401 for a two-bedroom in south Scottsdale’s Ten Wine Lofts. The renter with the long-term lease can earn an average of $902 a week, according to Airbnb. The rates and renter earnings vary by the time of the year and sublet timeframe.
The least expensive Airbnb apartment rental is in northwest Phoenix’s Deer Valley area at the Crystal Creek apartments. The starting monthly rent is $977, and the average earnings for the leaseholder is $629 a week.
Apartment market watchers say the program can help renters struggling with higher costs earn extra income if they have other places to stay.
But the verdict is still out on what it means for rent prices in metro Phoenix. What will help make apartments more affordable is more apartments getting built.
A look at average rents by Valley neighborhood
To help figure out where you can afford to live, here are some median rent prices for two-bedroom apartments in popular metro Phoenix areas, according to research firm ApartmentAdvisor.
In Phoenix’s Ahwatukee Foothills, renters are typically paying $1,816 a month.
In west Phoenix’s Alhambra neighborhood, the median apartment cost is $1,499.
Renters can expect to pay about $2,269 in central Phoenix.
The median in Phoenix’s Deer Valley is $1,623.
In Goodyear’s Estrella area, the median rent is $1,424.
Tenants typically pay $1,500 in north Phoenix’s North Mountain neighborhood.
South Phoenix’s median two-bedroom rent is $1,628.
And when negotiating, ask for concessions. About 42% of metro Phoenix rentals are offering at least one concession, including free months of rent or parking, according to Zillow. That compares to 28% last year.