Hi Tim,
Across the country, rents are rising rapidly. In Mesa specifically, the median rent price is up 17% since January, growing significantly faster than during pre-pandemic years. A big reason is vacant apartments in Mesa are becoming increasingly scarce. While rents are up 17%, the local vacancy rate has fallen to less than 3%. The chart below shows this relationship between rents and vacancies playing out on the national scale.
In our latest report, What’s Driving Up Rent Prices This Year?, we examine the trends that are creating this competitive rental market. We provide data and commentary on five factors:
- Rapid household formation post-pandemic has pushed the total number of households in the US to an all-time high: more than 131 million.
- Meanwhile, the for-sale housing market is plagued by high prices and low inventory, keeping more families renting for longer.
- As a result, the sheer volume of people hunting for apartments online is higher today than ever before.
- Facing a highly competitive rental market, apartment hunters are searching today with heightened urgency.
- As more households compete for fewer apartments, historically low vacancy rates allow property managers to be highly selective and raise prices.
Check out the full report here. If you have any questions or would like to hop on a call to discuss the data, please let me know!
Best,
Chris
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