Phoenix’s rising rents drive more toward homeownership
Recent data shows that apartment rents in Phoenix are on the rise. In fact, according to RealPage, Inc., rent in the area has hit an all-time high, increasing faster than anywhere else in the country. Phoenix is seeing year-over-year rent growth of 8.1%, says the property management software company, making apartment renting increasingly more expensive both in immediate cost and opportunity.
With 62% of households in the Phoenix metro as owners of their home, over one-third of total valley households need to be concerned about the rent hike’s direct effect on their finances. As costs to renters climb high fast, now might be the time for this body to consider homeownership.
There tends to be a cycle in home living that sees people first into apartments and eventually a house as their family grows, financial stability increases, and they become more rooted where they are, planning to stay put for a substantial amount of time. While the most common type of home loan is the fixed-rate loan typically for 15 or 30 years, some may have the misconception that they must be willing to stay in the house for decades. The cliché is that buying a house means “settling down” and calling a place “home” for the long haul. Traditionally, this seems to be the case. Former generations operated this way, but Millennials appear to be hesitant about getting on board with the idea of moving to the suburbs and solidifying a lifestyle there.
In past generations, living and working may have dictated how people would buy homes and whether they felt it was feasible to sell their home in Phoenix and move in to another one, if conditions like job changes or family growth did not demand that they do so. In 2019, however, it is more common than ever that working individuals move from employer to employer regularly. Also true today, real estate has evolved to allow families more flexible options in selling and buying homes that make the processes much easier than in the past.
While those who live in apartments may enjoy the freedom that not being “tied down” to a home might offer, house living is beginning to become just as fluid. The notion that buying a house means settling is becoming outdated. Real estate tech iBuyers like Offerpad are making it more feasible than ever before to pick up and move in as fast as a few weeks. Whether out of traditional necessity or simple desire for something new, potential home buyers and house-selling homeowners now have real estate iBuyers as a resource that provides convenience with on-demand solutions.
Amid record-breaking rising rent costs, now may be the time for Phoenix renters to seriously consider what buying a home could do for them. As monthly lease options increase like never before while home buying, selling and moving get easier through iBuyers, there may be more incentive now for renters to consider the investment of buying a house in Phoenix. Building home equity in the strong real estate market of the Phoenix metro could be beneficial for renting residents in the area, and the peace of mind offered by the option to later sell to Offerpad and move with ease and control is an added incentive.
David Stephan serves as communications manager for Offerpad. With previous experience in a variety of industries including food services, athletics, transportation infrastructure and financial services, David manages Offerpad’s external communication efforts.