In Phoenix, tenants compete for scarce rentals

Bidding wars, open houses and other features of the real-estate boom are back as tenants scramble to snag rental homes. Rentals are scarce elsewhere, too.

By Teresa at MSN Real Estate Sep 14, 2012 11:12AM

In Phoenix, the real-estate frenzy is back.

 

Crowds of people are flocking to open houses. Homes are drawing multiple offers. Properties are going for more than asking price.

 

We're talking about homes for rent, not for sale, though the inventory of homes for sale in Phoenix is low, too.

 

Post continues below

 

© Vstock LLC/Getty Images"It's a crazy rental market right now," Liza Asbury of Realty One Group told The Arizona Republic. "There are multiple offers for properties. If it (the home) is nice, it is definitely going fast."

A number of factors have converged to create a market in which an abundance of renters are competing for scarce homes, The Republic reports. Homeowners who suffered foreclosures are looking for places to live. Those who might otherwise buy are scared off by what happened to the neighbors as they watched home values fall 60%. And as the overall economy improves, people are moving to Phoenix for jobs and young people who had been living with relatives are looking for their own places.

The Republic tells the story of Greg Gale, a loan officer, who went all out to secure a rental home. To get the 4,600-square-foot Scottsdale home he wanted, he wrote an emotional and personal cover letter to go with his application, complete with photos of his children. He got the house.

 

The market for homes to buy is hot in Phoenix, too, as investors snap up homes to use as rentals. In July, nearly a third of the single-family homes purchased were slated to become rental property.

There historically has been a shortage of affordable rental properties in many cities, particularly for people at the lowest income levels. But in some cities such as Phoenix – and Peoria, Ill. – there is also a shortage of middle-income homes for rent.

 

"It's a very tight market. It's been tight before, but never like this. I don't see it easing up," Shawn Hayes,  managing broker for Principle Property Management in Peoria, told The Peoria Journal-Star. "We've been 100% full at both of our complexes since May. We're all building more units because we don't see it easing up."

Tags: rentals
 
36Comments
Sep 22, 2012 9:34PM
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I live in Phoenix (a.k.a., the Valley of the Sun) and have since '69. I currently work for a real estate attorney. I was just wondering in what dimension/solar system the author of the article was living in, because it doesn't contain the same Phoenix/Valley of the Sun that is located on this planet. Not with real estate, or jobs. I guess it goes to prove you can't believe everything you read on the internet :) Just sayin . . .
Sep 22, 2012 6:06PM
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THIS ARTICLE IS PURE CRAP, YOU PEOPLE THAT COMMENT ON HERE ARE JUST AS FULL OF CRAP AS THOSE  WHO WROTE THIS GARBAGE.

Sep 22, 2012 5:38PM
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I don't mean to be cruel, but honestly, folks, from the wording and spelling and illogical assumptions I see here, I'm amazed that any of you could afford to rent a decent place to begin with. Except for the post speaking to how a ghetto begins.

 

 It doesn't always happen that way, but often enough. Depends on how expensive the neighborhood is.

 

Bottom line: no conspiracy here. Empty houses for sale cheap and people who didn't blow their cash buying them and hoping to make a profit renting them out. A lot of these will lose out along the way as well. That's the chance you take in business.

Sep 22, 2012 3:21PM
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I live in Phx and have not seen this, there are still also plenty of homes for sale.
Sep 22, 2012 1:04PM
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And this my friends is how a ghetto is born. First the housing market gets flooded with homes which makes them cheap. Realtors buy up the cheap housing for rental properties and whole neighborhoods turn into rentalhoods. The pride of ownership goes out the window and the realtors don't give a crap because they get their rent regardless. If they have section 8 status, even better.
Sep 22, 2012 10:44AM
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Wow , I feel pretty bad for that loan officer having to beg to rent 4600ft of houe in Scottsdale. I guess he's writing loans for somebody, probably the  people that are buying the other 4600ft houses.

Sep 22, 2012 10:14AM
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Beam-up Trekkie to the new world~

In NY, CITY and San Fracisco, CA. we lived in a Donald Trump lke apartment for

$30~ bucks a night with full hook-ups called a "RV" that go's where the money

or the weather is.

Living in a geto of sticks and bicks is old hat ! (do the math)

Sep 22, 2012 8:17AM
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Yeah right, they're building my ****...how many new construction starts have they had.

 

Wealthy investors are buying up houses for less that 1/2 of their value because they are foreclosed on, they are lying vacant with no occupants and crime is going up huge so the mortgage companies are blowing them out for some more profit.

 

They are buying them to keep prices high for renters, slumlords.

 

How about make loans available to low income people because that is what we have become.

 

If our country doesn't get creative and invent another housing industry, or internet...We are screwed, we really need to create jobs.

Sep 22, 2012 4:40AM
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We dopes in the country never learn. Got to buy that house, car, I-phone got to have it can't wait, will pay a premium. And when we get over our heads again in debt, what do we do. Why just walk away and leave the mess for the next crew to clean up.
Sep 22, 2012 4:36AM
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thank you " president " obama we are doing good
Sep 22, 2012 3:50AM
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Its a great time to sell before the 3.8% HEALTH CARE TAX IS SLAPPED ON TOP OF 6% interest for real estate sales person. Wow! Almost 10% of the sale down the tubes on BS.
Sep 22, 2012 3:48AM
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If the TRUTH were told, probably ILEAGALS buying with stimulous money. 
Sep 22, 2012 2:05AM
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LOL now they can enjoy dust, crime and sitting in traffic!
Sep 22, 2012 1:26AM
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Great just great. Landlords across the country will look at this as their ticket to raise their rents which I already see going on in Oregon which is where we are getting ready to transfer for employment purposes! We would love to buy but how many people have $20,000 - $30,000 sitting around?! 

 

Rentals are already around $1500 in Oregon & gas is $4 a gallon. Wonderful (sarcasm at it's highest level)!

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