Five metropolitan area zip codes showed a housing reversal, with homeownership changing from majority to minority.
PHOENIX — The Valley’s housing market has grown for nearly a decade, changing the structure of some zip codes.
Nationwide, and here in Phoenix, the number of new rental units far outstrips single-family home construction.
According to Rent Cafe’s analysis of U.S. Census data, zip codes in five metropolitan areas have “flipped” residents from majority homeowners to majority renters.
Desert Ridge zip code 85054 saw a nearly 90% increase in rental units.
“It’s not a big surprise. The region is changing, the region is evolving,” said Anubav Bagley, director of regional analysis for the Maricopa Government Association. “Since the housing market downturn, the entire Phoenix market, and the domestic market as a whole, has changed.”
Bagley lives in that 85054 zip code. After the recession, Bagley said many millennials are renting homes instead of owning them. The number of apartment buildings has increased.
“A case in point. We’re reducing single-family homes by 35% to 40% and adding multifamily by 11% in this metropolitan area,” says Bagley.
In 15 zip codes in Maricopa County, rental properties accounted for over 80% of new construction. Many of them are located in metropolitan areas.
“As our economy evolves, it’s certainly no surprise that more zip codes will have more rental properties,” Bagley said.
This change also means new burdens. Housing prices are rising across the board, and renting is no longer an affordable option.
“Apartment rents have gone up about 80% over the last decade,” says Bagley.
Nearly a quarter of all metropolitan renters spend more than 50% of their income on their homes, Bagley said.
With all that growth, Bagley says metropolitan areas need to find flexible and affordable solutions so that some of the workers our cities depend on have a place to call home. said there is
“We need enough housing to give people the choice to stay here, work here, and live here,” added Bagley.
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