Is it better to rent or buy in Phoenix?

Real estate in Phoenix has been looking up for the past few months, as home prices are rising and demand is increasing. These growing demands are making people rethink their decisions to buy, and some are opting to rent homes. However, these trends are flowing into the rental market, as well, as many people are effectively forced to make bids on rentals.

In some of the Valley’s most popular communities, renters are putting in applications for more than one single-family home to ensure they can get a residency in the neighborhood. For some, looking for a rental is essentially a part-time job. According to The Arizona Republic, some are dedicating up to 20 hours a week just to find the perfect new home, and sometimes are forced to offer more than the asking rent price.

This increase in demand for rental property has been affected by the number of homes in the area that went into foreclosure or were put on the market as short sales. Other individuals can no longer qualify to purchase a home even though mortgage rates are low. Because of this, many landlords are raising rents. Additionally, certain landlords in the Phoenix area are holding open houses for rental properties.

“The location makes the biggest difference. A prime location, whether it is rent or sale, allows you to get it off the market as soon as possible,” Sean Badding, who owns five rental properties in the Valley, said to the source.

As landlords are raising rents, renters have had to jump on any opportunity for a property. Rob and Sandra O’Dell began their search for a rental property in July and didn’t find one until they saw an owner putting up a “for rent” sign. The couple offered to give a security deposit on the spot to claim the home. 

For people looking to purchase a property, now is an ideal time because prices are up when compared with last year, but aren’t as high as they were before the housing crash. According to AZ Central, the median price of a single-family house is up 30.7 percent from last July, and the average price per square foot went up 21.1 percent. With low mortgage rates and improving availability of bank credit, purchasing a home may be slightly less frustrating than renting in Phoenix.