Rent or Buy When Moving to Phoenix? How to Decide

Should you rent or buy when moving to Phoenix? Rent first if you don't know the Valley, your job location may change or you need time to learn commutes. Buy right away if you know where you'll work, plan to stay several years and can find the right home. Either way, match your lease to your buying plan.

I'm Terry Day with DeLex Realty. This is one of the first questions relocation buyers ask me, and there isn't one right answer. The Phoenix area is big, and the right choice depends on how well you know it, how settled your job is and how long you plan to stay. Here's how I help people think it through.

The case for renting first

• The Valley is spread out. Commutes vary a lot by route and time of day. Living here a few months shows you what you can live with.
• Neighborhoods feel different in summer. Renting through a summer shows you how heat, shade and pools fit your daily life.
• Your job may move. If your employer has several campuses or you're on a trial period, renting keeps you flexible.
• You can shop in person. Touring homes on weekends is easier when you live here.
• Rental supply has grown. My post on Phoenix rents falling while national rents rise explains what new apartment supply has meant for renters.

The case for buying right away

• One move instead of two. Moving a household twice costs time and money.
• You know where you'll work. If your office or hospital or plant isn't moving, you can target the right area now.
• You plan to stay. Buying usually makes more sense the longer you own.
• The right home is available. A home that fits your needs today may not be on the market when your lease ends.
• Building equity. My post on funding two retirements, yours and your landlord's covers the long-term side of this question.

Get the lease timing right

If you rent first, match the lease to your plan. A shorter lease or month-to-month option may cost more but keeps you from paying to break a lease when you find a home. Ask the landlord in writing about early termination terms before you sign. Start home shopping two to three months before your lease ends so you're not rushed.

An option many relocating buyers don't know about: assumable loans

Some homes for sale have an FHA or VA loan the buyer may be able to take over, subject to the lender's approval. Assuming a loan can mean keeping the seller's existing loan terms, which can be attractive compared with a new loan. You still need to qualify, and you'll usually need to cover the difference between the price and the loan balance. With a VA loan, the seller's VA entitlement is restored only if a qualified Veteran buyer assumes the loan and substitutes their own entitlement, so ask the servicer about eligibility early. I help buyers find these homes and work through the steps. See my page on assumable mortgage homes in Arizona.

Questions to answer before you decide

• How sure am I about my job location for the next few years?
• How well do I know the Valley's areas and commutes?
• How long do I expect to stay in the next home?
• Do I have my down payment and a pre-approval ready?
• Would a home with an assumable loan change my numbers?
• How flexible is my lease, or how flexible could it be?

A middle path

Some relocating buyers rent in the part of the Valley they think they'll like, then buy nearby once they've confirmed it. Others buy a home that's easy to resell or rent out later. I can show you which areas have steady resale demand and how long homes take to sell there.

Frequently asked questions

Is it better to rent or buy when moving to Phoenix?

It depends on how well you know the area, how stable your job location is and how long you'll stay. Renting buys time; buying avoids a second move.

How long should I rent before buying in Phoenix?

Long enough to learn your commute and the areas you like. Many people rent for a lease term and start shopping a few months before it ends.

Can I buy a home in Phoenix before I move?

Yes. Many relocating buyers buy from a distance with video tours, one in-person trip and remote signing.

What is an assumable mortgage?

A loan, often FHA or VA, that a qualified buyer may take over from the seller with the lender's approval.

Do I have to be a Veteran to assume a VA loan?

Ask the loan servicer about eligibility. The seller's VA entitlement is only restored if a qualified Veteran buyer substitutes their own entitlement.