PHOENIX RENT IS NO LONGER LESS THAN A HOME LOAN PAYMENT!
The days of homeowners eager to get their homes rented and willing to discount the rent to get it rented are gone. It used to be cheaper to rent than own. Now that Short Sale and Foreclosure homes no longer dominate the resale real estate market, home prices have recovered and rental rates are climbing due to competition and lack of available rentals. Rents are already higher than the cost of owning your own home with nothing to keep them from rising higher. Take your monthly rental payment and multiply it by 12 months to 360 months of payments to see the lost equity you could be building in your own home that you are now paying as rent.
2015 Marks Sixth Straight Year of Higher Than Normal Rent Increases
RISING RENTS ARE NOT UNIQUE TO THE PHOENIX METRO AREA
According to MPF Research, the residential rental market intelligence division of RealPage, the nation’s seven strongest markets for rent growth in 2015 were all found in the West including Portland at 12.7%, followed by Oakland, Sacramento, Seattle, San Diego, Las Vegas and Denver, all between 7.2% and 9.5%. Check out the rest of the top 15 markets, according to MPF Research, below:
Leaders in Annual Rent Growth for New Residents
Year Ending in the Fourth Quarter 2015
Rank Metro Rent Growth
1 Portland, Ore. 12.7%
2 Oakland, Calif. 9.5%
3 Sacramento, Calif. 9.1%
4 Seattle-Tacoma, Wash. 8.6%
5 San Diego, Calif. 7.7%
6 Las Vegas, Nev. 7.5%
7 Denver-Boulder, Colo. 7.2%
8 West Palm Beach, Fla. 6.9%
9 (tie) Atlanta, Ga. 6.8%
9 (tie) Fort Worth, Texas 6.8%
9 (tie) Tampa, Fla. 6.8%
12 (tie) Fort Lauderdale, Fla. 6.7%
12 (tie) Phoenix, Ariz. 6.7%
12 (tie) San Jose, Calif. 6.7%
15 Orlando, Fla. 6.6%
LOAN RATES ARE STILL AFFORDABLE UNDER 4% - BUT EXPECTED TO RISE
Fortunately, mortgage rates for qualified buyers are still under 4%. But there is a lot of talk in the news about a recovering economy that will force mortgage rates to go up.
Now that the Phoenix job and real estate markets have stabilized, rents are rising and loan costs are low, but expected to rise, make the smart move and buy a home of your dreams as soon as you can!
Contact Sam Elam, Associate Broker at Berkshire Hathaway HomeServices Arizona Properties to learn:
- how much home you can afford to buy,
- what you will save in lower monthly living expenses by owning,
- how much wealth you will create by building equity in your home.
An added plus is homeowners with good credit are rated as higher value consumers who get breaks on what they have to pay.
Berkshire Hathaway Arizona Properties
Associate Broker, ABR, CRS, GRI, e-PRO