For 10 years, Juanita has lived in the same apartment — and she'd like to stay.
The low rent of $914 for a three-bedroom apartment is a big reason.
While Juanita expected to pay more when her lease was up, she says she was shocked by her new rent.
"I start crying. I knew there was no way I could afford it," she says.
Of course, rent increases are expected, but some Valley apartment complexes are raising rents so high so fast that they deserve a spotlight.
Of the dozens you told me about, these are your three biggest offenders.
Already on our list: Avery on the Green Apartments in Chandler.
Stephanie faced a $724 rent raise.
"I just don't understand how you could increase that much when nothing has changed in one year," she says.
That 55% increase places Avery on the Green, as our third biggest Valley rent raiser you told us about.
It is a huge amount — but it's still less than what Adam says he faced.
"When they jacked it up that much, I was like, they're crazy," he says.
Adam had a one-bedroom apartment at the Laurel Apartments in Chandler.
He says his $1,121 rate jumped to $1,835 at renewal.
It's a 63% increase, placing the Laurel Apartments in Chandler as the second worst offender rent-raiser on our list.
So, why such huge increases?
You may say apartments are taking advantage of high demand and low supply. Juanita says this is what her office told her.
"They had to get it up to fair market value," she says.
Juanita was at Village Diamonte in Glendale, which is now called Fringe on 61st apartments.
She expected maybe a $500 increase at most and says she could likely handle that.
Instead, Juanita's rent went from $914 to $1,945.
"When you say $1,000 more, who can afford $1,000 a month?" she asks.
With an increase of 112%, the Glendale apartment complex takes the number one spot, the highest percentage rent raise of any Valley complex you told us about.
And it's far too much for Juanita.
"I was devastated. You're asking me to move out of my home," she says.
Juanita did find another place for a few hundred dollars less.
None of the apartments got back to us but the Arizona Multihousing Association (AMA) did contact me. They represent the apartment industry in the state.
The AMA points to a Yardi Matrix study showing that year to year, Metro Phoenix rents increased by an average of just 6.5% — and that's below the 9.5% national average.
They say "rent increases at the level you suggest...would be tremendous exceptions, not the rule."
They blame increases on high "rental occupancy rates," "record inflation," and say high costs have made it difficult for owners.
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Need free rental assistance or eviction help? Have an issue with a contractor, car purchase or repair, family law issue, debt concern, or other consumer problem? Talk to an attorney or expert for free in person, Tuesday, October 18th from 5 to 7 p.m. at Let Joe Know on the Road at the Tempe Marketplace District Stage.
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If you face a major rent increase or outrageous fee, email me at joe@abc15.com.
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Here are the AMA's answers to my questions concerning Valley apartment monthly rent increases:
Joe: I'd like to ask why rents have been raised so high so fast all at once?
AMA: "Nothing in the statistics we see daily shows rent increases at the level you suggest. Such increases would be tremendous exceptions, not the rule. Credible analysis shows that rent in metro Phoenix increased about 6.5 percent between September 2021 and September 2022. That's below the national average of a 9.5 percent increase.
The increase in rent is being driven by two major factors: The law of supply and demand and skyrocketing inflation.
Every year, more than 100,000 people move to Arizona, which has made the state and the Valley among the largest gainers for population in the U.S.. Until recently, new construction was unable to keep up with this surging population. With rental occupancy rates at 50-year-highs, the shortage of available housing drove up rent. So, too, did record inflation. Put simply, as the cost of gasoline, building materials, payroll costs, insurance costs, interest rates and property taxes have risen, so has rent to reflect the rising costs of doing business."
Joe: Is that extra money needed for extra costs?
AMA: "Absolutely. For years, national statistics have shown that property owners earn about a 9 cent return for every dollar of rent a resident pays. That's a thin profit margin compared to many businesses, and it has become even more difficult for many property owners to stay afloat during a period of rising inflation.That's especially true of mom-and-pop property owners who use their rental properties to finance their retirements."
Joe: If so, what are those costs that would reflect such big increases? Or is it because owners CAN raise rates given demand?
AMA: "The cost of doing business for property owners has skyrocketed just as it has for everyone else. That includes the soaring cost of fuel, electricity, company vehicles and equipment, tires, furniture for furnished units, the cost of payroll and employee benefits, and property taxes as valuations have risen - the list goes on and on.
Just as the rental housing industry did during the pandemic - when an eviction moratorium allowed many renters to skip rent for 18 months - most rental owners continue to work with their residents to keep them in their homes and to contain rising costs."
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