Metro Phoenix renters are finally getting a break.

Valley rents have stopped their heady increases and are down in most areas.

Also, Arizona legislation has been introduced to give tenants more help.

It’s needed after metro Phoenix led the nation with a 30% rent hike in 2021 as the area drew droves of new residents during the pandemic. Many tenants trying to renew leases in 2022 were hit with increases of hundreds of dollars a month.

But rents aren’t dipping because the Valley’s growth has stalled. The Phoenix area ranked second to Houston for apartment leasing in 2023.

“Phoenix was one of the nation’s top apartment demand performers in 2023” because of strong job growth, said Kim O'Brien, an analyst with apartment data firm RealPage.

The growth is driving more much-needed apartment development, which could put more downward pressure on rents.

How many rental deals were inked in 2023?

The median monthly rent in Phoenix was $1,355 in January, according to Apartment List. That’s down 5% from a year ago.

That makes the Valley the 59th most expensive metro area for rent. The median U.S. rent is $1,373.

Avondale posted the biggest drop in costs to tenants. The West Valley city’s median rent fell almost 6% during the past year to $1,281 for a two-bedroom. Phoenix and Goodyear saw rents fall about 5%.

Surprise was the only metro Phoenix city to see rents climb, with a 1% increase. Now, the once-affordable suburb’s median two-bedroom rent cost is $1,748, only $14 less than in the Valley’s priciest city, Scottsdale.

Renters inked deals for 12,027 Phoenix-area apartments in 2023. That’s only behind Houston’s pace of 15,506, according to RealPage.

Construction started on more than 20,000 apartments across the Valley last year, ranking the area No. 4 for multifamily building. But housing analysts say more is needed to tackle the housing shortage.

Not all of the apartments are being built from the ground up. Almost 1,400 apartments underway are coming from office conversions, according to RentCafe. The redevelopment of the Kierland Sky offices on the Scottsdale/Phoenix border will add 420 apartments.

Not in my backyard: Metro Phoenix needs housing, but new apartments face angry opposition

Attempt at Legislature to rein in rents

New Arizona legislation calls for stabilizing rents with a law that limits the amount landlords can increase tenants’ costs by at most 10% a year.

Cities and counties can’t impose rent control laws in Arizona. Limiting what apartment owners can charge tenants has drawn big opposition.

A group of Democratic lawmakers is backing the legislation and several other bills to help Arizonans with high housing costs, including a bill requiring landlords to disclose fees and more information to renters.