Tempe Town Lake

"renter-occupied homes outnumbering owner-occupied ones, 31,427 to 28,115"

And as we all know home owners take much better care of them homes then renters.

We can blame this problem on Tempe Mayor Hugh Hallman and the Tempe City Council since they take credit for everything good that happens it the city this must be their fault.

Source

Housing vacancy hike in Tempe tracks national trend

by Kylie Gifford - Nov. 30, 2009 07:51 AM

Special for the Republic

Tempe has followed the national trend toward an increase in housing vacancy over the past decade, according to the most recent census data.

As the 2010 census approaches, the recent state of the economy and its impact on the real estate market pose a new challenge to occupancy rates.

The U.S. Census Bureau reported that vacant units made up 5.2 percent of the 67,068 total units in Tempe in 2000. This was well below the national vacancy average of 9 percent. The homeowner vacancy rate was 1 percent, and the renter rate was 6.1 percent.

But according to data collected between January 2006 and December 2008, the average vacancy rate climbed to 11.2 percent of 66,145 total units, just barely below the national level of 12 percent. The homeowner vacancy rate climbed to 3.9 percent, and the rental vacancy rate to 6.5 percent.

Between these two data collection periods, Tempe also saw a slight shift in owner vs. renter occupancy. Owner-occupied housing units slightly outnumbered renter-occupied ones in 2000, but the latest figures show renter-occupied homes outnumbering owner-occupied ones, 31,427 to 28,115.

The Lofts at Rio Salado, a Tempe apartment community owned by Sares-Regis group, is at about 85 percent occupancy, according to leasing consultant Matt Daniels.

"It's on the low side," Daniels said. "We like to be in the upper 90s, or at least above 90 percent. When we get below 90 is when we start to get nervous."

This current occupancy level, however, has not been consistent. Daniels said the level fluctuates depending on the season. He explained that occupancy is higher during certain times of the year, specifically in the fall when school is starting and even in December.

Daniels has been a leasing agent at various properties throughout the area over the past nine years. He said that though occupancy tends to vary throughout the year, there are certain factors that could be contributing to high vacancy in the leasing arena.

"I think a lot of it is overbuilding," he said. "The economy is tight, and people are more willing to downgrade a little bit to places that aren't as nice. We're also competing with condominiums and homes, so the competition is a factor."

Nick Bastian, an agent at Realty Executives International, has been working in the East Valley real estate market since 1992. He says that though there are vacancies and the market is affected, there are positive aspects about the current market that are often overlooked.

"There is a lot more opportunity for first-time homebuyers," Bastian said. "The pricing is higher in Tempe than in many outlying areas, and now there is an opportunity for people to come live a lifestyle they wouldn't otherwise have been able to."

Even with foreclosure situations, Bastian said, it is not all negative.

"If someone is facing foreclosure, we'll help them get into a rental property for a while," he said. "When they get back on their feet, they get back into the market."

Bastian said that the renters' market in Tempe is strong, but so is the owners' market. He explained that in the lower price range, homes are hard to get because there are bidding wars among several potential buyers.

Many people are not aware of the strength of the market because the media are typically six months behind in reporting market trends, Bastian said.

"I think there are people who are waiting for signs that it's OK to buy a house," Bastian said.

The increase in vacant housing units has been accompanied by a recent influx of individuals applying for homelessness assistance, said Theresa James, the homeless and fair-housing coordinator for Tempe.

James said that the city has also seen an increase in people living in parks or on the streets. Many have moved to Tempe from other states thinking there are more jobs here. A large proportion of these individuals are homeless for the first time, James said.

"We are seeing an increase in people needing assistance because of the economy," she said. "From the homelessness side, I'm getting increased calls from middle- and upper-class people who have lost their jobs and are on the verge of losing their apartments or homes."