Phoenix Renters Are Choosing Mortgages Over Rising Rents

AZ Big Media is reporting that rising rents in Arizona have would-be renters seeking out affordable homes for purchase leaving homebuilders to reap the benefits.

Previously, homebuyers forwent the idea of buying a home due to the inability to secure a mortgage loan or geographical uncertainties where a potential move to a new location would stifle home buying in the interim. But not anymore. Rising rents and reasonable interest rates have caused buyers to consider the option of owning rather than renting. The Phoenix metro area is a prime example of what is not only a trend but has become a common practice over the last several years. 

In 2015 alone, rents increased nine percent, followed by another nine percent the next two years combined. According to RentCafe, 83 percent of the nation’s cities saw increased rents in 2017, data that Tempe-based homebuilder Fulton Homes might call a three-year-long stroke of luck.

Owing most of that to home prices not seeing 20 percent increases that many Phoenix rentals are now demanding, Doug Fulton says stable home prices and holding interest rates indicate that the trend will continue. 

Taking advantage of the affordable price point where mortgages are comparable to renting a two-bedroom apartment, Fulton Homes’ new development in Maricopa, Glennwilde, opens in January. Homes start under $200,000 and feature a whopping 49 different floor plans ranging between 1,595 and 4,732 square feet. The community also includes a catch-and-release lake, and an on-site elementary school.

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