Alexandria Cullen

Business Story
November 20, 2022
The Future of Phoenix Housing

For nearly the fifth year in a row, the city of Phoenix has topped the charts as the
number one largest growing population in the United States. But as the number of people
flocking to reside in the city soar, so does the cost of housing in and around the State.

The city of Phoenix is home to multiple colleges, a thriving business scene, several
professional sports teams, amongst other elements that attract people of all ages to its arena.
So, it is easy to see why people from around the world are up and moving their lives to call the
city home. However, these record high numbers come at a cost… Figuratively and literally.

According to an article written by Marco Santarelli at the Real Estate Investment

Company Norada, residents or newcomers looking to purchase a home in the Phoenix market,
will find that houses are currently up 8.9% in 2022, with a median price of $430,000 compared
to the year 2021.

Gabbi Poetzl, a Phoenix native recently purchased a townhome in the central Phoenix
area. She said that plenty of research went into the process behind finding her first-time home.
Factors such as location, safety, price range, and amenities were all necessary considerations
when making her investment.

“It was everything I have been looking for, and I am thrilled with my purchase. However,
I wish I would’ve been in the market a year earlier, as the house previously sold for nearly
$100,000 less in 2021.”

Although, other investors, like Marylou DeLisa who have been in the Phoenix real-estate
business for years, have seen their investments gain tremendously in value. However even with
increased rent prices, factors including property taxes, insurance, and general maintenance
continue to rise every year, thus cutting into profit margins.

“I have continued to raise my monthly rates for every tenant based on the current
economy and due to the increases in expenses, especially rising property taxes,” DeLisa said.
“It’s incredibly hard as a landlord to send out rental agreement price increases, especially
because some of these tenants have lived in my houses for many years. Unfortunately, it’s
become necessary.”

But for those who are either looking for a short-term option, or who cannot currently
afford to purchase in this market, renting is an alternative.
 Nonetheless, an article written by Senior Real Estate Reporter Catherine Reagor, at the
AZ Republic says, “Phoenix led the nation in rent increases. There has been more than a 30%
increase in the price of apartment rentals last year…” (Reagor, 3).

The article goes on to state that although the answers regarding price increases is multi-
faceted, one major factor is population growth.”

Bri Pacelli, a current resident at the Roosevelt Row Apartment homes in Downtown
Phoenix, lives in a two-bedroom two bath apartment, which she shares with a roommate.

They initially rented the home for $2,300, making individual rent $1,150 without any
added utility expenses.

“I love living downtown, its central to my work and school which is very important,”
Pacelli said. “My roommate and I went to inquire about renewing our contract for the next year
and were told pricing were increasing by $75 per person, depending on the length of the term
and lease.”

Ultimately, it comes down to the simple science behind cause and effect. As more
people gravitate to the Phoenix area, the higher demand for housing accommodations results
in an increase in price across the board.
Sources

Why rent is skyrocketing in the Phoenix Metro Area. Arizona PBS. (2022, March 31). Retrieved
November 20, 2022, from https://azpbs.org/horizon/2022/03/why-rent-is-skyrocketing-in-
the-phoenix-metro-area/ 

Santarelli, M. (2022, November 11). Phoenix housing market: Prices, trends, forecast 2022 &
2023. Norada Real Estate Investments. Retrieved November 20, 2022, from
https://www.noradarealestate.com/blog/phoenix-real-estate-market/ 

Bri Pacelli: (949) 767-6690

Marylou DeLisa: (480) 838-1684
Gabbi Poetzl: (480) 468-4741