As mortgage interest rates stay below 7%, many potential homebuyers choose to stay in apartment rentals.
A recent report from RentCafe shows the amount of square footage that renters can get in metro Phoenix for $1,5000 each month.
RentCafe rated 200 U.S. cities using apartment data from its sister company Yardi Matrix to identify where renters can show the most space within a monthly budget of $1,500.
A study shows that renters in the West Valley can find 180 square feet more than those in the East Valley.
However, nothing compares to Tucson, where renters can get 896 square feet for $1,500, according to the study.
Scottdale, known for its higher home prices compared to nearby cities, ranks last on the Arizona list of largest cities, offering just 675 square feet for $1,500. Tempe did a bit better with 691 square feet for $1,500.
Here is an analysis of the square footage available to renters for $1,500 in 10 Arizona cities:
- Tucson: 896 square feet
- Surprise: 857 square feet
- Peoria: 849 square feet
- Glendale: 834 square feet
- Mesa: 833 square feet
- Gilbert: 802 square feet
- Chandler: 802 square feet
- Phoenix: 793 square feet
- Tempe: 691 square feet
- Scottsdale: 675 square feet
The market is cooling, with renters currently getting more concessions, such as free weeks of rent or free parking, according to a study released on August 12.
In metro Phoenix, 50.1% of rental properties offered concessions in July, compared with 40.5% a year ago.
The typical rent asking for both apartments and single-family rentals is $1,884, but the asking rent for apartments especially is $1,624.
A major reason for the decrease in the rental market is the increase in multifamily construction, which is creating new opportunities for renters and changing the balance between supply and demand.
According to a study by RenCafe in July, 57.9% of renters remain and renew their leases.
When thinking about what $1,500 will get renters in different cities in the Southwest, North Las Vegas has the most space at 926 square feet, followed closely by Albuquerque, New Mexico.
In the meantime, Wichita, Kansas, stands out as the top city among the 100 largest in the U.S., giving renters an impressive 1,359 square feet of space for just $1,500 a month. The average rent for apartments in that city is $882, with an average apartment size of 799 square feet.
Compared to that, in Manhattan, New York, renters pay $1,500 for just 228 square feet.
