The latest report from real estate firm Colliers International finds Valley rents have increased by more than $100 over the past two years with the average rental price now $900 per month.

Trevor Koskovich with Colliers International in Phoenix says increased demand is to blame, especially among 20 to 32-year-olds who may be leaving roommates and parents for their own places.

The hottest markets include central and east Phoenix, Tempe and other areas dubbed ‘infill.' “Meaning interior core, less driving and commuting and more living and amenities," Koskovich said.

He says higher wages and new residents are also behind the new buildings. A healthy market, Koskovich says, brings 8,000 to 10,000 new units every year, something we did not see during the Great Recession.

“So there’s a little bit of catch up there and on top of that you’ve got some speculation, so I think it’s a combination of those things, but in a very positive way," he said. " It seems at this point to be very sustainable.” 

He expects rents will keep rising over the next two to three years.

More highlights from Colliers International Greater Phoenix 2016 Report:

• 5.2% vacancy rate (50 basis points lower than one year ago)
• $899 asking rent (7.4% increase compared to one year ago)
• Class A asking rents increased 9% in the past year to $1,337 per month
• Nearly 7,000 units delivered in past 12 months
• Approximately 10,000 units under construction