Phoenix BTR Rents Nearly 50% Higher Than Apartments

In Phoenix, single-family rentals are 46% above the cost for apartments, that’s according to a Zillow survey of major USA metro areas. While high mortgage rates are keeping a lid on buyer demand and home value growth, and a response from builders has kept multifamily rent growth stable for many months, rents for detached single-family homes continue to accelerate. The Phoenix-metro area leads the nation in the build-to-rent (BTR) sector.

Zillow’s Skylar Olsen comments, “We’ve got the large millennial generation wanting to move into a larger space. High and unpredictable mortgage rates and hefty down payments are pushing some to rent that lifestyle instead of buying it.”

Single-family rents are up 41% since before the pandemic, compared to 26% on multifamily rents. Single-family rentals hold a 59% price premium over multifamily units in Salt Lake City, the largest difference among the 50 largest U.S. metros.