The home-buying market in the Phoenix area is still "quiet," but the same can't be said about rentals.
According to the monthly real estate report from Arizona State University's Center for Real Estate Theory and Practice, the rental supply in the Phoenix area is at "unusually low levels" due to a heavy demand.
-Report: Phoenix-Area Home Prices May Not Go Up This Year
-ASU Research: Millennials Not Buying Houses in Phoenix Area
"In addition the supply of single family rentals is dropping much faster than apartments, condos and townhomes," the report states. "The supply of single family rentals is now well under 1 month."
This isn't particularly surprising. Previous months' reports have explained that Millennials -- as well as anyone who lost their home in a foreclosure or short sale -- aren't buying homes. You're undoubtedly familiar with some of the reasons why Millennials don't buy homes, as has been explained in countless media reports on the topic: a higher burden of student-loan debt, a preference for urban living, an appreciation for the flexibility of a rental, being turned off by the mortgage crisis, in addition to several other factors.
"The average time on market for a leased home (excluding vacation rentals) fell to 50 days, down from 53 days last month," this month's report says. "With this fast turnover and low vacancy rates, it is likely that rents will increase in the most popular locations."
The report also suggests that some Baby Boomers and Gen-Xers don't want to give up the low interest rate on the mortgages they have, so they may be more inclined to just rent out their home instead of selling it when looking to move. Baby Boomers and Gen-Xers represent most of the demand for home-buying in the Phoenix area, the report states.
That demand's still low, and the latest available stats on the market, from February, support the prediction made in last month's report -- home prices may not appreciate at all for a majority of the year.
"However the Phoenix market is highly volatile and nothing is certain," the report notes.
Got a tip? Send it to: Matthew Hendley.
Keep Phoenix New Times Free... Since we started Phoenix New Times, it has been defined as the free, independent voice of Phoenix, and we would like to keep it that way. Offering our readers free access to incisive coverage of local news, food and culture. Producing stories on everything from political scandals to the hottest new bands, with gutsy reporting, stylish writing, and staffers who've won everything from the Society of Professional Journalists' Sigma Delta Chi feature-writing award to the Casey Medal for Meritorious Journalism. But with local journalism's existence under siege and advertising revenue setbacks having a larger impact, it is important now more than ever for us to rally support behind funding our local journalism. You can help by participating in our "I Support" membership program, allowing us to keep covering Phoenix with no paywalls.