Renters in metro Phoenix are getting a bit of a break these days.
It’s not that rents are falling, just that they aren’t rising as fast as they did last year.
The average cost of leasing a Valley apartment grew by about 5 percent during the past year, according to new data for the national research firm Yardi Matrix.
In 2015, the monthly cost to lease a Phoenix-area apartment jumped almost 8 percent.
But more bargains could be coming renters' way soon.
The Valley is in a midst of an apartment building boom. So many projects are popping up so fast, it’s getting tough to keep track.
In central Phoenix, it seems as if a new complex is replacing an old building or filling in a vacant lot on every other corner. About 4,000 apartments are in progress or planned in the area.
Demand was so high for apartments in downtown Phoenix at the end of 2015, the area had the highest average rent in the Valley.
But that’s already shifting a bit.
Many apartment developers are already building in some rent deals because of the number of new complexes going up, according to real estate analysts.
Renters in Peoria and Mesa, where there are fewer new complexes underway, aren’t seeing any dips in their monthly payments. The average rent in both Valley cities climbed more than 1 percent in March.
Rapidly rising Valley rents have definitely enticed more people, particularly Millennials, to buy. But homebuyers are seeing rising costs, too, as the area’s prices continue to steadily climb.
While rent increases will likely wane more this year, metro Phoenix home prices aren’t expected to fall.
So the big question is, what will the apartment-building boom mean for the Valley’s housing market?