Thanks to a recent report from Corelogic, we know that Phoenix rents dropped for seven straight months in 2022, and by November they had fallen 7.5% year over year.
Will the deceleration continue? Most economists agree that rent growth will continue to decline in Phoenix and other sunbelt cities where home price appreciation and rent both are falling at the same time.
Phoenix Leads the Nation In Slow Rent Growth
Many homeowners who have had their properties listed for sale in recent months are finally taking those properties off the market and are listing them for rent while they wait for the real estate market to recover.
As of January 2023, both Phoenix and Las Vegas lead the nation with the slowest rent growth since May 2021, and Miami, followed by Boston, are not too far behind.
Higher-tiered single-family rentals are also seeing declines in rents nationwide (Down 6.5%) as higher-value properties are often the first to take a hit in the declining real estate market.
A Sign of Things to Come For 2023?
Although economists know that both the real estate and rental markets typically cool during the winter months, they agree that the cooling we’re seeing now is directly tied a variety of issues including a struggling economy.
Besides having a slow labor market, Phoenix has also struggled with high inflation as well prices for most consumer goods in the area are close to 10% higher than a year ago.
The good news is that despite cooling rents, Phoenix continues to be a hotspot for real estate investors who are looking to add more single-family and multifamily rentals to their portfolios.
If you’re investing in rental properties in Phoenix, work with the top property management team who knows the rental market in the area.
To learn more about the property management services that we can offer you, contact us today by calling (866) 545-5303 or click here to connect with us online.
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