Should you rent or buy a home in Phoenix Arizona?

If you’re thinking of moving to Phoenix, Arizona, you’re likely already considering where you want to live. There are so many wonderful suburbs of Phoenix to call home, it may be a daunting task trying to decide which neighborhood to call home. Once you’ve settled on a spot, the age-old dilemma pops up…to rent or to buy? Whether you are renting or buying a home in Phoenix, each comes with its own set of benefits and hardships.

Rent or Buy a home in Phoenix?

Is it cheaper to rent or to buy in Phoenix?

The median cost of rent in Phoenix is currently about $2,550 a month for an average, small home with no pool or extra amenities. For most homes, if you have put 10% down on the home, your monthly mortgage rate will be less than rent would be. As inflation rises and homes become more and more expensive in the Phoenix area, many are left wondering if they should still try to buy in this volatile market or rent until the housing market calms down.

 

Benefits of renting a home in Phoenix:

When you rent a home or apartment, you are paying not only for the space you live in, but the “not my problem” added bonus of not being the actual property owner. This means when appliances break, plumbing has an issue, or something needs a fresh coat of paint, your landlord will be the one organizing and paying for the repairs. For many, the added stress of these sometimes extremely exorbitant problems being theirs to solve is overwhelming.

Once you own a property, every potential hazard becomes yours to fix, and sometimes that can be a much bigger ordeal than you had originally suspected when you noticed a small leak coming from the gutters.

aerial photo of a Phoenix Arizona neighborhood, Should you rent or buy a home in Phoenix AZ (2)

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Renting also provides a sense of security for the commitment-phobes of the world. No, we aren’t talking about being unable to have a healthy relationship or stay at a job for more than two years. Buying a home means committing to this house, this lot, this neighborhood, for a long time. When you rent, you have the freedom to leave if for any reason you decide you don’t love the area or just want a change of scenery. If you start to outgrow a space, this isn’t a big deal if you are renting.

But if you decide the home you have purchased is no longer suiting your needs, getting it off of your hands is a much bigger ordeal.

The Phoenix Metro Area has a large concentration of short-term rental properties, which offers a great insight into different parts of town. If you want to move to Phoenix and rent for a while until you decide where you would really like to put down roots, this could be a useful tool for you.

Many of these homes are rented on websites like Airbnb, or VRBO. They generally come fully furnished as well. If you are moving to Phoenix with all your possessions in tow, this might pose an issue for you. But if you have the opportunity to store your belongings or even leave them elsewhere while you are trying out various parts of town, this is a great way to try before you buy.

Phoenix Arizona apartment rental complex, Should you rent or buy a home in Phoenix AZ (3)

Benefits of home ownership in Phoenix AZ:

The benefit of owning an asset at the end of the day is always going to serve in your best interest, so theoretically, buying a home is the better choice. This isn’t always an option, but the advantages of home ownership are numerous. Unless you buy a home in full, in cash, you can expect to pay a mortgage payment monthly to slowly whittle away at your mortgage debt.

The average American does not have the financial means to buy a home in cash, especially if they have yet to sell the home they’re currently living in, so let’s assume you will be paying that monthly mortgage rate.

Your mortgage payment may come out to be more or less than monthly rent. This depends on the part of town you consider renting in, the size of the space, etc. But let’s assume you are paying about the same price each month whether you rent the space or own it. After five years of renting a space, when your lease is up, you have nothing to show for it. You will sign another one, or pack up and leave, now looking for somewhere else to live. After five years of living in a home you have purchased, you are five years closer to paying off your mortgage, five years closer to owning this asset in full, and you don’t have to find anywhere else to live; it’s yours forever.

Deciding to buy over rent sounds like simple math, right? Why would you throw your money away each month when you could be making an investment? Unfortunately, it isn’t as cut and dry as the Econ 101 breakdown above. In Phoenix in particular, the rising cost of real estate is making home ownership cost prohibitive to many.

With a ten percent down payment, many still find it difficult to make the minimal payment necessary to purchase a home. The pandemic only compounded the issue for the average prospective home buyer, as homes sold for sometimes hundreds of thousands of dollars over asking price.

Scottsdale homes in suburban neighborhood, Should you rent or buy a home in Phoenix AZ (1)

So…which is better? Renting or Buying?

At the end of the day there isn’t a better choice because each buyer/renter is different. Deciding on buying or renting your home is a big decision, and many variables play into the outcome. If you think you are ready to buy, setting up a meeting with a realtor is an excellent place to start, and will put you in contact with an industry expert who can help you navigate these intimidating waters.

Ready to buy a home in Phoenix, Arizona?

Are you ready to move to Phoenix, Arizona? If you want to buy a home in the Phoenix Metro Area, reach out to me at AZLiveStlyes, I would love to help you find a home to call your own.

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R. M.
R. M.
23:04 31 May 22
I contacted Greg after finding one of his videos on the overall market.He took tremendous care to feel out what would be suitable for me and match my needs to the right house in the right neighborhood. I cannot begin to thank him enough for all the effort he put into finding me a place.He is knowledgeable, courteous and all around a good man.I give him my highest possible recommendation with no reservations whatsoever.
Scott Koren
Scott Koren
02:10 29 Apr 22
I recently moved to Phoenix from out of state and found Greg through his series of online videos for AZ Live Style Group. Buying a house when coming from another state is challenging, but I can say I found the ideal partner and agent in Greg. In a very challenging market, Greg's deep knowledge of the Phoenix area market, his patience, and especially his dedication to helping me find the right home was exactly what I needed. Greg took the time to help me learn the market, explore neighborhoods, and find the right home! I'm excited to start my next chapter here in Phoenix and I cannot recommend Greg highly enough for anyone who needs a great partner in finding their perfect home.
James Foster
James Foster
00:54 26 Mar 22
Greg really listened to what we wanted and made the whole process super easy. He didn’t try to sell us on a property that we weren’t interesting in but was also able to show us a few places that we might not have found on our own. Will definitely continue to use Greg in the future.
terry parde
terry parde
22:14 25 Mar 22
Greg is awesome! Found him on his Youtube channel about 1.5 years ago when I was planning to move to AZ. I worked with Greg over the phone and finally in person a year ago. He found me the perfect home in Chandler. He guided me through the whole offer process with an anticipated bidding war. His strategy worked. I won the offer in 24 hrs and closed in 30 days. Everything went perfectly and love the home after 1 year. Greg's in-depth knowledge of the area, the market conditions and the strategy to close the deal was perfect spot on. I felt almost no stress and he managed all the details thru the closing. Professionalism on display!
Kathy Laurinaitis
Kathy Laurinaitis
19:51 25 Mar 22
We have worked with Greg on selling 2 homes and buying 2 homes. Greg is a professional through and through. He was always available to jump on a call to discuss whatever was going on. His experience and guidance helped us make great decisions during the process of buying and selling our homes.
Elizabeth Lewis
Elizabeth Lewis
19:46 25 Mar 22
We were completely new to the area and Greg was incredibly patient and knowledgeable. He listened to our needs and helped us navigate through the whole process. He kind and funny as well. He is an absolute pleasure to do business with.
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