When creating your yearly and monthly budgets, one of the largest expenses to account for is housing costs. In downtown Phoenix, renting your home or apartment is common, with about 87% of households being renter-occupied.
Throughout downtown Phoenix, there are options to buy and rent homes, apartments and condos.
- Median sale price of a townhome in downtown Phoenix: $655,000
- Median sale price of a condo in downtown Phoenix: $477,500
- Median rent price of a one-bedroom apartment in downtown Phoenix: $1,886 per month
For more information on buying a home in downtown Phoenix, Redfin provides an analysis of the local housing market.
Read Next: Ultimate Guide to Living in Downtown Phoenix
In this article, we’re going to focus on the cost of living in downtown Phoenix as a renter.
Although it might seem straightforward, the monthly cost of living in Phoenix depends on a wide range of factors. Generally speaking, rent prices downtown can range from around $1,100 to over $5,000 per month, depending on housing type and size, amenity offerings, location, and more.
To help you better understand the cost of living in downtown Phoenix, we have created this guide including:
- How rental rates are calculated
- Which factors affect the price of monthly rental rates
- Other fees to consider on top of monthly rental rate
How Much Does it Cost to Rent an Apartment in Downtown Phoenix?
How Rental Rates are Calculated
It’s important to understand how rental rates are calculated so that you can best understand what rent typically costs in Phoenix.
In a house, traditional apartment complex, or other similar traditional rentals, the entire apartment is typically under one lease regardless of how many bedrooms or roommates there are. This means you’ll be charged one lump sum rate each month and be responsible for splitting any bills amongst yourselves if you’re sharing the cost with a roommate or partner. The rental rate listed is typically for the entire space.
As opposed to a traditional lease, coliving spaces are slightly different. In a coliving apartment, leases are split up by the bed, meaning each roommate signs an individual lease for their own bedroom. The roommates share the living room, kitchen, and any other common areas, but each person is only financially responsible for their individual lease. With coliving apartments, the rental rate is typically listed per person/per bedroom.
It’s also important to take note of the lease length. Lease terms are typically around 12-months, and can range anywhere from six months to two years. Some lease terms may even fall outside of this range.
Some apartments offer a slightly discounted monthly rate on longer lease terms since it is a less flexible, greater commitment for the tenant and guarantees that the landlord is receiving rent payments on the apartment for an extended timeframe. On the other hand, a shorter lease may have a higher monthly rental rate since the landlord is taking on more risk in terms of keeping the apartment occupied.
Factors that Affect the Price of Monthly Rental Rates
As we’ve mentioned, rental rates vary greatly depending on multiple defining factors. Some of the most prominent include housing type, floor plans, building age and unit features.
1. Housing Type
Downtown Phoenix and its surrounding areas have quite a few housing options, and each housing type has its own range of rental rates. The most popular housing types for renters are:
- Traditional Apartments
- Coliving Apartments
- Single-Family Homes
Traditional apartments are the most common type of rental in downtown Phoenix.
A perk of traditional apartment complexes is that they frequently offer community amenity packages such as a fitness center, pool and lounge. Especially in newer developments, these offerings are sometimes elevated to include yoga or spin studios, pet spas and resort-style rooftop pool decks with killer views.
These apartments can also range in layout from a compact studio to a sprawling penthouse unit with multiple bedrooms and bathrooms. Therefore, the monthly rental rate for apartments in downtown Phoenix can range from around $1,100 to over $5,000 depending on the apartment complex you choose.
In a traditional apartment, the entire unit is under one lease. So, while you can split a larger unit with roommates to save money, you will be responsible for doing so yourself.
Read Next: How to Find Roommates in Downtown Phoenix
At a glance, a coliving apartment might not look any different than a traditional apartment. They often have similar amenities and floor plans to a traditional apartment. However, the main difference lies in the lease structure.
Coliving apartments are leased by the bed, meaning that one person signs a lease to have access to a private bedroom, plus the apartment’s common spaces that are shared by the other roommates.
Because roommates in a coliving apartment each have their own individual leases, you don’t have to worry about being financially responsible for an entire apartment or splitting bills individually. This is also typically less expensive than renting a one-bedroom apartment on your own since multiple people are sharing one common area.
Coliving apartments usually have roommate matching services to pair you with other individuals, which is convenient if you want to share an apartment to save money but also don’t already have a roommate in mind. This apartment type commonly has two to four bedrooms and is a popular living style for young professionals.
The cost of an individual room in a coliving apartment in downtown Phoenix typically ranges from around $1,200 to $1,600 per month.
Townhomes are another popular type of rental in Phoenix.
A townhome unit in Phoenix typically ranges from one to four bedrooms and is usually one to three stories tall. As opposed to an apartment where you have neighbors above, below, and/or next to you, you will only share a wall with neighbors on one or both sides of the townhome.
While some townhomes are part of a larger development including traditional apartments and condos, communities dedicated to townhome living are generally neighborhood-style. This makes them a popular option for smaller families or those seeking more privacy.
Townhomes often have individual entry to each home. Some townhomes include a private, attached garage within the unit, while others have covered or uncovered parking options. Communities dedicated to townhome living may have a gated entry, and many have a community amenity center with features like a pool, fitness center, or clubhouse.
Similar to a traditional apartment, the entire townhome unit is normally under one lease. Depending on the size of the townhome and other community features, townhomes in Phoenix typically range from around $1,500 to upwards of $3,000 per month.
The final housing type discussed in this article is single-family homes.
While availability for single-family homes is much more limited in the downtown area compared to other rental options, it’s still possible to find houses in many neighborhoods throughout Phoenix.
While some rental homes may have a patio or even a pool, they typically lack amenities such as fitness centers, rooftop pool decks, and maintenance and security services that many apartments feature. Single-family homes are a popular option for families and couples due to the space and privacy that they offer.
Generally, the larger square footage that a house offers, coupled with limited availability, makes single-family homes one of the more expensive rental types. The entire house will also normally be under one lease. Depending on numerous factors such as size, location and age, renting a single-family home in Phoenix can range anywhere from around $1,500 to over $5,000 per month.
Once you’ve decided which type of housing is right for you, you’ll need to think about the size of the apartment that will best suit your budget and lifestyle.
Generally, apartments that you share with roommates or a partner will be the cheapest, while renting an apartment with one or more bedrooms yourself will be more expensive. So, unless you are sharing the cost of the apartment with someone else, you can expect the monthly rate to increase as the number of bedrooms and bathrooms increase.
3. Building Age
Another large factor in monthly rental rates is the age of the building. Typically, the price of rent decreases as a building’s age increases.
The age of the building often goes hand-in-hand with amenities and other community offerings. New developments will more commonly have luxury amenities and interior finishes in pristine condition, while older options generally have smaller or nonexistent amenity packages with fewer luxury offerings.
4. Unit/Room Features
Finally, the features of each individual unit can play a large role in your rental rate. Even for two apartments in the same building, the details of each specific space can significantly increase the price of rent.
While the number of bedrooms and bathrooms are the most prominent factors that influence price, you’ll also want to consider the impact of additional features on cost:
- Is your unit furnished?
- Does the unit have a balcony or patio?
- Does your unit have modern finishes, appliances, and/or technology upgrades?
- Do you have an in-unit washer/dryer?
- Are you on a higher floor? Do you face more desirable views?
If you answered “yes” to any of the above questions, it’s important to know that these factors are associated with higher rental rates.
Other Fees to Consider On Top of Monthly Rental Rate
Aside from the specific features of your space, there are additional aspects of renting that can add to your monthly rate. These costs may include:
- Application Fee, Admin Fee, and Security Deposit
- Rental Insurance
- Moving and Storage Costs
- Cable TV
- Pet Deposits, Pet Fees and Pet Rent
- Amenity Fees
For a more comprehensive guide on the typical fees associated with renting an apartment, check out our article: 13 Additional Costs to Consider When Looking for an Apartment in Downtown Phoenix
With the many housing types and various factors that can influence monthly rental rates, we hope this article has helped you better understand how much it costs to live in downtown Phoenix. If you have any further questions about renting in downtown Phoenix or about prices and availability at Moontower, contact our leasing team who is always happy to help.