Rental Rates in the Valley have crested apparently. An article in the East Valley Tribune talks about the rapid rise of apartment rents from 2005-2007, accelerating over 10% in that time period. Vacancy rates are now higher in the apartment project segment, as many investors have homes they are resigned to renting out, and quite a few condos as well. Rents are expected to rise 2.5%-3%.
Vacancy rates are higher than healthy now for apartments, but I think people are definitely exercising their choices, and many are beneifitting from renting a Single Family Residence at a very reasonable cost. Its part of the cycle. The hidden factor of this is that it may draw and keep some homes off the market that would have otherwise been clogging the MLS as well. I have a home I am considering just renting out a home I have as well, as it is in central phoenix, and would probably still command a good rental rate. Central Phoenix has so far been fairly insulated from any real nasty valuation slides.
Chris
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