To the surprise of no one in the know, especially those in the current hunt for a home to rent, a new lease high occurred this month of May. The Phoenix Metro communities, for the first time, hit $1.00 per square foot (PSF).
Our Monday Market Snapshot readers have known for awhile that we’re very much concerned about the dual rise of home prices and residential lease rates. Is anywhere affordable? Yes, a number of places, but you’ll have to drive further from all things central to get better affordability. There is also a correlation between rental affordability and home pricing.
Examples of City Lease Rates Per Square Foot (PSF)
Metro Average: $1.00 PSF
The City of Phoenix is $1.07.
North to NE Valley: Anthem is $.90. Paradise Valley is $1.45. Scottsdale is $1.30. Cave Creek is $1.21. Desert Ridge is $1.12. Fountain Hills is $1.07 PSF.
West Valley Cities PSF: Avondale is $.76. Glendale is $.94. Buckeye is $.79. Peoria is $.91. Surprise is $.85.
Southeast Valley cities PSF including Tempe $1.13, Chandler $.97, Mesa $.98 and Gilbert $.92. Apache Junction: $.83
Paradise Valley and Scottsdale, not surprisingly, take the top (PSF) lease spots in the Valley.
All lease rates above are single family non-vacation home rates.