Phoenix, Arizona (Getty)
Rents in South Phoenix go north.
According to AZCentral.com, the cost of renting a home in the neighborhood has increased 57 percent over the past five years, climbing to over $2,000 in areas where rents were just over $750 in 2017.
The hot market is crowding out some low-income residents in the area south of the Salt River, where the median income is about $38,000 a year, the news site said, as landlords see an opportunity to get more for a unit, doing what they can around earn a little more money every month.
And when someone wins, someone else loses.
“What we’re seeing is the announcement of rent increases, but also lease non-renewals where landlords may want to take time to renovate the property and rent it out to a higher income earner,” Pam Bridge, director of advocacy and litigation at Community Legal Services, the website said. “And moving is so expensive. It’s devastating for families.”
The reasons for the price increase in the neighborhood are numerous. A study by the city found that Phoenix had a shortage of more than 160,000 residents, meaning there was no space to accommodate the growing population.
Additionally, some fear local businesses and available land will be bought up by wealthy speculators.
Meanwhile, vacancies are at a 50-year low, increasing price pressure on the market.
With no end in sight to rent increases, some community displacement advocates are proposing buying a home instead – a move that would give them long-term stability on the monthly nut.
But the home-buying market is also hot, with the median price in Phoenix in December being $427,000 — a record for the city.
[AzCentral.com] – Vince DiMiceli
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