Lisa Simpson
May 4,2010
In: Foreclosure Crisis

The Foreclosure Crisis Has Led to an Increased Demand for Family Houses in Phoenix

The foreclosure crisis has led to an increased demand for family houses in Phoenix.

The foreclosure crisis has led to an increased demand for family houses. The people want to rent family sized houses in Phoenix region but their choices are limited. Since last September the number of homes available for rent in the metro region has fallen by 40% or more. The demand is greater for houses having three to four bedrooms. This sharp fall in availability of rented units in proper localities is a result of the foreclosure crisis.
In the beginning foreclosures led to a spike of houses available for rent. Those who had suffered from the crisis and lost their homes or walked off from useless mortgages, discovered they could rent units in the same area for less the amount they paid towards mortgages per month. In many of neighbourhoods that have recently surfaced tenants with dubitable credit were not turned away.

But the picture has changed in the last few months with more and more of the previous owners becoming tenants. This has led to an increase in demand. Meanwhile more foreclosures are underway and the lenders are sitting on unsold houses. This has led to a drop in the number of homes available. When ultimately these enter the market the rents tend to rise and the landlords are getting multiple offers. Within days the houses are occupied.
Mike Orr who is an analyst in housing and the publisher of Cromford Report said, “The demand for single-family rentals is clearly outstripping the supply, causing an unprecedented fall in the inventory of available rentals. The trend shows no signs of stopping.” Orr commented that the apartment zones in Phoenix were lying vacant but the agencies have long waiting lists for family houses.

One of those looking around to rent a family home is Melissa Flores. She has three children and foreclosure swallowed up her house last January. Since then she has been trying to locate a house near the school of her children. She has knocked on over dozen three bed roomed units but failed to compete who were willing to pay more or whose credit records were better than hers. She said, “I knew people who lost homes and rented houses blocks from their old home. I thought at least I could keep my kids close to their school and friends.”

Mike Orr observes that there were over 5,460 houses offered as rent on the Arizona Regional Multiple Listing Service. Now the number has come down to 3,100.