Apartment rental rates in Arizona increased nearly twice the national rate in the first six months of 2019.
According to a recent study by the website RentCafe, apartment rates in Arizona climbed 5.8 percent from January through the end of June. The national average during this same time period was a 3.2 percent increase.
According to recent Census estimates, Arizona has one of the fastst growing populations in the U.S.
The population growth puts a strain on the housing market, including the apartment market, as more and more people are choosing apartment living. In 2016, nearly half of all living rentals in the state were apartments.
Researchers at the University of Arizona are studying the state's growth and see no signs of a slowdown. They predict that the continued growth of the housing market will bring a boost to the overall state economy.
Over 9,000 apartment units are expected to be built in Arizona annually through 2030. That growth is expected to sustain 14,000 jobs a year and pump over a billion dollars into the economy. And those numbers are tied to the construction process and do not include the long term, recurring revenue of ownership and support businesses that will grow around these units.
The RentCafe survey found that from January through July of 2019, the average rent in Tuscon was $870 a month. In Phoenix it was $1,084 monthly. By comparison, the authors found that “Wichita, [Kansas,] is the country’s most affordable city to rent in, at $656 per month, while the average monthly rent in Manhattan, NYC is $4,190.”