PHOENIX — The cost to rent an apartment in the Phoenix area has increased dramatically in the past 12 months.
According to a report from ApartmentList.com, “Phoenix rents have increased 3.7 percent over the past month, and have increased sharply by 20 percent in comparison to the same time last year.”
The higher prices are making it difficult for families to pay rent.
Additionally, experts told ABC15 tens of thousands of residents may be facing eviction once the moratorium is lifted.
When asked what’s causing prices to rise, 72 Sold CEO Greg Hague said, “Arizona is unique in that we have the highest percentage of investors buying homes to rent."
According to the report, in August 2020, a one-bedroom in Phoenix used to cost less than $900 a month.
Now, the average price for a one-bedroom is $1,100 a month.
Hague said families that can’t afford to buy a home have to rent.
"You have so many people that can't buy because there's so much competition for homes and there are other challenges like maybe their credit isn't where it should be or they haven't saved a down payment yet, and so you have this huge number of people that are forced to rent and what's happening -- all that demand on the rental inventory is enabling those investors who own that rental inventory to raise the prices,” he said.
Hague said his company will launch a new rent-to-own program this year to help those looking to purchase a home.
"Everyone knows that over the past year, in particular, we've had astronomical appreciation in homes and that's really good if you own home but it's really challenging if you don't and particularly challenging to those people who are renters that want to get into a home,” he said.
Meanwhile, local governments like the City of Phoenix offer emergency rental assistance. That money was approved by the federal government as part of a series of stimulus or relief packages and given to cities to help those affected by the pandemic.
A spokesperson for the city said some of the money can be used to pay for deposits for new places.
Altogether, the city has spent nearly $24 million helping more than 3,000 households with emergency rental assistance.
For more information on emergency rental assistance, click here.
To view the full Apartment List rent report for the Phoenix area, click here.