By Amy Edelen | Cronkite News0
A new report shows Tucson and Phoenix-area renters have had to deal with a double whammy: Dwindling or stagnant incomes coupled with significant rent hikes.
The report, released by the National Association of Realtors, indicated the two metro areas are among those where the gap between rental costs and household income is increasing.
“It’s something we are watching since rising housing costs are getting to unhealthy levels,” association spokesman Adam DeSanctis said.
The association collected data on 70 major metro areas and analyzed household income growth, housing costs and homeownership changes in renter- and owner-occupied households over the past five years.
Tucson ranked fifth for the largest decrease in income for renters aged 25 to 44 years old. The study indicated income dropped about 3.5 percent. During the same time period, the area saw an 11 percent increase in rent.
“We don’t have the jobs we need,” said Allan Mendelsberg, real estate agent at PICOR Commercial Real Estate in Tucson. “We’re doing a lot to revitalize downtown, with a lot of renovation throughout Tucson. But until we have high-paying jobs, people are not going to be able to afford high apartment pricing.”
Tucson has experienced a trend in luxury property building as well, which may fuel the disparity between rental cost and income.
However, Mendelsberg, who specializes in multifamily apartment and investment properties sales, did point out that rent in Tucson remains lower than most cities at an average of $638 a month for a single unit.
The Phoenix area, which includes Mesa and Glendale, saw a 2 percent increase in income during the five-year period coupled with a 9.8 percent hike in rents.
Phoenix rentals have been rising 5 to 8 percent per year for single-family homes and condominiums, Nationwide, rents have increased 15 percent over the past five years, while the association estimated that household income has gone up 11 percent.
Experts said the problem with the disparity is it makes it difficult for renters to save for down payments.
