Rental prices across the Phoenix metropolitan area are showing changes as a large influx of new housing supply meets market demand, according to the latest market data.
The Zumper Phoenix Metro Report released this month shows the median rent for a one-bedroom apartment in Arizona is $1,232. While some areas maintain higher price points, several submarkets are experiencing year-over-year price drops, altering the landscape for both landlords and tenants.
The report highlights a range of affordability across the Valley. Flagstaff is the most expensive market for renters, with one-bedroom units averaging $1,700 per month, followed by Scottsdale at $1,690 and Gilbert at $1,550.
In contrast, the West Valley and other outlying areas reported the lowest median prices:
Glendale had the lowest median rent, with one-bedroom units priced at $1,010.
The report found specific rates of decline in several cities. Glendale saw a 15.1% annual drop, while Goodyear rents fell 9.3%.
Crystal Chen, a housing market expert at Zumper, attributes these trends to a high volume of recent construction. During a peak period, the Phoenix metro added more than 27,000 new rental units annually.
“Phoenix metro renters currently have a ton of negotiating power as supply is still elevated, concessions are plentiful, and prices in most submarkets remain below where they were a year ago,” Chen said.
Chen said the West Valley absorbed a large share of this new housing.
“Goodyear seems to be one of the markets that absorbed a significant share of Phoenix's new supply wave, and that inventory hasn't fully cleared yet," she said. "That's good news for renters in the near term since there's real room to negotiate.”
Goodyear Mayor Joe Pizzillo celebrated the 9.3% decline as a development for residents and working families.
"I have heard from residents that it's difficult to get entry-level housing, especially for our young people and our seniors on fixed income, " Pizzillo said. “I'm pleased to see that (rent prices) are going down, because it puts more money in the pocket of residents. Affordability is a hot button item right now, and not just for rent, but for everything.”
Pizzillo said that apartment occupancy in the city is approximately 85%, and said the competition between properties was likely contributing to the dropping rental rates.
While the city has partnered with developers like Dominion to introduce affordable senior and multi-family units, Pizzillo expressed that the city's broader focus remains on homeownership.
"What I would love to see is owner-occupied affordable housing," Pizzillo said. "Getting people in starter homes is a real way to build the wealth that is necessary to retire, but unfortunately there's so many variables out there. You have land prices, interest rates that are still high and availability."
The city of Goodyear is finalizing new zoning ordinances intended to streamline the building process. Pizzillo stated that reducing administrative time and paperwork could lower costs for developers, with the expectation that those savings could be reflected in the final housing product.
Chen said current indicators suggest the rental market may remain soft through the end of the year.
“When cities as different in character as Glendale, Chandler, Goodyear, and Phoenix proper are all declining year-over-year, it tells us this isn't a story about one or even a few submarkets or price tiers. The supply wave was broad enough to touch nearly every corner of the metro.”
As long as the supply of available units continues to meet or exceed the rate of new resident absorption, market experts expect renters in the Phoenix metro area to maintain their current level of leverage in lease negotiations.
Meet James James Goldmeer joined Independent Newsmedia, Inc., USA, in July 2024, starting their career as a reporter in Goodyear and Litchfield Park.
Community: James grew up in the West Valley, calling Avondale home and going to school in Glendale and Peoria. Returning to the community after university, James plans to get involved in everything arts and culture, and civil rights.
Education: Northern Arizona University a bachelor's degree in Journalism, a certificate in Professional Communications, with a minor in English.
Random Fact: James spent half a year as an intern for the Arizona House of Representatives communication team, working with legislators to inform the public through press releases and social media.
Hobbies: James collects postcards and old books, reads memoirs and attends local jazz shows.
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