By Roland Murphy for AZBEX
Even though the current economic situation is cooling the trend toward sky-high rent increases – particularly in Arizona – a recent report from Zumper shows the state is home to seven of the 100 most expensive cities for renters.
The national median rent for a one-bedroom apartment was flat for November, and the two-bedroom rent dropped 0.4%.
The massive increases of the last two years were fueled by major economic expansion, low-interest rates, supply chain and labor shortages delaying new unit deliveries, and pandemic-fueled migration. Now, with inflation running at its highest rates in decades, interest rate increases to curb inflation, and “return to the office” mandates forcing some workers to return to the cities they left, trends are beginning to unwind, according to the report.
Nationally, New York, Boston and San Francisco lead the list of the 100 most expensive cities, with Shreveport, La.; Wichita, Kan. and Akron, Ohio taking the bottom positions. New York rents are currently $3,790 for a one-bedroom – up 19.2% year-over-year, and $4,420 for a two-bedroom – up 27% year-over-year. At the other end of the spectrum, Akron rents are $690 for a one-bedroom – up 6.2% YoY, and $880 for a two-bedroom – up 15.8% YoY.
Arizona Cities Feature Heavily
As noted above, seven Arizona cities make the list of 100 most expensive cities for renters. The cities, their rankings, and rents for one- and two-bedroom units are:
- Scottsdale, #14, $1,900, $2,500;
- Chandler, #25, $1,590, $1,890;
- Gilbert, #26, $1,570, $1,820;
- Phoenix, #42, $1,390, $1,690;
- Mesa, #44, $1,360, $1,720;
- Glendale, #47, $1,350, $1,720;
- Tucson; #85, $940, $1,300.
The report takes a close look at Arizona, specifically, calling the state, “…a perfect illustration of pandemic-era migration trends and how those trends are now beginning to unfurl.”
“Median one-bedroom rent across Arizona was $993 in April 2020; two years later, it was up 33.5% to $1,326,” the report states.
As the economy and the market continue their forays into uncertainty caused by softening demand from inflation, interest rates and return-to-work policies, rate increases are slowing. According to the report’s Arizona market review, “One-bedroom median in Phoenix is up just 0.7% month-over-month, while the two-bedroom median is down 0.6%. Chandler, Gilbert, and Tucson saw one-bedroom medians fall this month, and we expect that trend to spread to cities like Scottsdale and Mesa over the next six months.”