January 6, 2022

Year-Over-Year Rent Price Analysis

The subject of today’s snapshot is for Downtown, Phoenix, Arizona. Based on our analysis, Phoenix’s year-over-year average rents increased across all bedroom types.

Our standard neighborhood analysis uses a 12-month “LookBack” to establish an average baseline rent. The results from the 12-month LookBack analysis are presented in the tables below for Downtown Phoenix 1–2-bedroom rents from January 1, 2021 – January 1, 2022:

As the table shows, 1BR units increased by 16% from last year or $241 more, and the 2BR units increased by 5% or $117 more. As demonstrated by the table, year-over-year performance for all selected bedroom types increased in rent prices from last year.

Market Activity: Phoenix, Arizona 

Are you interested in investing in Phoenix, Arizona? Location is an important factor to consider when finding a profitable market for a rental property. The key characteristics of a good location include a strong economy, a growing labor force, and high rental demand. Below are some quick facts about the Phoenix rental market that can help you with your investment analysis and overall decision.

 

Price-to-Rent Ratio:

  • Avg 2BR House Price: $510,840 (According to Redfin data)
  • Avg Annual 2BR Rent: $29,100 ($2,425 x 12 months)
  • Price-to-Rent Ratio: 18

Population Growth:

  • 1.86% (According to Roofstock)
  • The population grew at a rate of 11.2% over the past decade, making it the fastest growing city in the U.S. in the past 10 years (According to Roofstock)

Major Companies & Institutions: The State of Arizona, American Express, Banner Health, the City of Phoenix, Wells Fargo, Bank of America, and Maricopa County

Employment Growth: 6% (According to Roofstock)

 

About Rentometer

Rentometer is the #1 tool for comparing residential rent rates anywhere in the U.S. To succeed as a real estate investor, you need solid, current market intelligence to help you set the right rent rates in Phoenix. Understanding local rents (and the factors that drive them) can help reduce investment risk, increase occupancy and improve your cash flow – and income. With Rentometer, you have local, current rents available right at your fingertips.

This article was written by the Rentometer Content Team. The Rentometer Blog features fresh takes and insights on rental housing topics, services, and technology.


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