Everybody, welcome back to a another episode of Market updates with AZ Digest. I'm Jeff Buettner from COR consultants. As always guys, you can check out our podcasts on any of the major podcasting platforms. And if you are interested in looking for a home or need help selling your home, you can always reach out to us at agent az digest.com. Okay, let's get started with today's topic. In previous episodes, I've talked a lot about month supply. And we've talked a lot about inventory and how inventory is down and how that's affecting month supply. And I've gotten a lot of questions about what is affecting that, you know, what is making demand go up? And inventory go down? And to be honest, I don't have the perfect answer. But I did find a stat that I thought was really interesting. That, in my opinion, kind of points to the fact that we're not in just a crazy hot market, just because we're in a crazy hot market, right? And that stat is monthly average lease price per square foot, right? lease price per square foot. So we're going to step away from how much homes are selling for and actually talk about how much are they actually being rented for. Now, if we go back to the last time, we had a crazy hot market 2005 2006 what we saw with the lease market was pretty interesting. From the time from about 2001 to 2005, the average lease price in all of Maricopa County, kind of the Phoenix metro area was going down, it was trending downwards. And you know, that makes sense. Because part of what happened back then, right with the crazy market is we had we had more inventory, right things were getting built, we had a ton of new builds. And a lot of what made the market hot was kind of speculative buying, people were buying up second, third fourth homes, turning them into rentals, whatever that looks like. And so that caused kind of that rent price would that lease price to go down? Well, if we took a look at the lease price numbers, for the most recent five years, in the Phoenix metro area, we've seen nothing but an increase. And in fact, if you go back to like 2014, and I've got this chart on the website, guys, so if you listen to the podcast, you can always go to the show notes, click the link, it'll take you to a blog post, you can actually see the chart we're talking about, you can also see and read through the transcription if you like that and watch the video. But back in 2014, at one point time in February, the average rent per square foot was about 68 cents. So just under 70 cents per square foot. That was kind of the average lease price. So the average monthly rent for the Phoenix metro area. Well, that number again, has done nothing but almost increase. since that point. Now there's been some few kind of dips in there, right. But since 2014, it's gone up over 75%. And if you look at the numbers from last month, November 2020. More this month, we're at almost $1.20 price per square foot in terms of lease price. So again, I think that this is having a huge impact on that demand. People who are buying homes or interested in buying homes are paying significantly more, they're seeing their rent go up, right and you take that in combination with kind of lower interest rates, and the ability to buy more home for less price per square foot, right, less than dollar amount. I think this is what's driving up the demand and giving us such a competitive market. So just another stat to look at as we kind of go through these different numbers that kind of help explain what's going on in our real estate market today. And all the numbers we talked about today are for the entire Phoenix metro area. So if you're looking in one particular zip code or city, and you want me to pull up stats for those, please don't hesitate to reach out to us. You can always contact us through our website, easy digest.com but I hope this was helpful. And again, guys, you can click the link in the show notes. You can see the actual chart I'm talking about here. It's really well defined that kind of steady decrease
From 2000 to 2005, and then it was kind of up and down from 2005 to basically 2015. And then a sharp, steady increase in how much you are paying for rent if you live in the Phoenix metro area. So, if this was helpful, please like and subscribe, you know, always helps with the podcast ratings. And if there's anything we can do for you, over at core consultants, please don't hesitate to reach out. Thanks, everybody. Talk to you next time.