The Number of High-Income Renters in Phoenix is Surging

Article originally posted on HERE on June 2, 2023

Change in renter-occupied households in the Phoenix area, by income

Apartment developers looking to attract high-income renters say they’re thinking beyond gyms and pools when it comes to amenities.

• We’re talking rooftop dog parks, coworking spaces, indoor rideshare waiting rooms and garage-to-apartment elevator service.

Why it matters: The push comes as many would-be homebuyers rent for longer, incentivizing properties to compete for a growing cohort of high-income renters.

By the numbers: The number of Phoenix-area renters earning $150,000 or more grew 91% between 2016 and 2021, per U.S. Census data.

• That’s higher than the national average increase of 87.5%.

Between the lines: High listing prices and mortgage rates aren’t making home buying as feasible or desirable as it once was, Chris Salviati, senior economist at Apartment List, tells Axios.

• Almost 99% of Phoenix properties are cheaper to rent than buy right now, according to a Redfin analysis.

What they’re saying: “A lot of folks in that high-income band, who in the past would have owned homes, are now continuing to rent — whether that’s for lifestyle reasons or because they are feeling like it’s not a good time to buy,” he says.