Ever since the State of Arizona legalized the use of an investment property as an Airbnb rental in 2016, real estate investors have wondered if an Airbnb Phoenix investment property is a good choice for real estate investing.
To answer the question right off the bat: Yes, an Airbnb Phoenix investment property is actually a great choice for real estate investing this year.
The beginning of 2018 is a prime time to invest in real estate in this city. We’ll show you why and where to invest to make the most money with an Airbnb Phoenix investment property.
Phoenix Real Estate Market 2018
A Growing Economy
The Phoenix real estate market 2018 is, without a doubt, one of the best places to invest in real estate for this year. This is thanks to the high demand for Phoenix investment property which comes from the economic growth. With more and more companies bringing their business into the Phoenix real estate market, contributing to major job growth, the unemployment rate dropped to 3.8% (as of the end of 2017). This thriving economy leads the Phoenix real estate market to be the most populous in the State. While this is certain to boost a traditional, long term investment property, Airbnb rentals enjoy the benefit of business meetings, job interviews, and house hunting in both high and low seasons.
The diversification of industries in growing fields also contributes to positive Phoenix real estate market trends. The top three industries supporting commercial and residential real estate investment properties are high-tech manufacturing, tourism, and construction.
Find Out: What Makes for the Best Place to Invest in Real Estate?
A growing economy makes for the most profitable real estate investment properties in the US housing market. Find an investment property in the Phoenix real estate market now. Click here to start your search.
No Natural Disasters
Besides the economy, an Airbnb real estate investor would be happy to know that the Phoenix real estate market has rarely experienced rockiness due to a natural disaster. The unfortunate natural disasters that have swept the nation in the last few years have really hurt many real estate markets, leaving investment property investors wary of future real estate investment in such markets. So, an Airbnb Phoenix investment property would be a good choice for you if you have any of these concerns. The city has never really seen hurricanes, earthquakes, fires, tornadoes, or snow storms. This is great as well for tourists looking to stay at an Airbnb Phoenix investment property.
Still unsure about investing in the Phoenix real estate market 2018? Then this is a must-read to make the final call: Should You Invest in Phoenix Real Estate in 2018?
Phoenix Real Estate Market 2018: Statistics
Now that you have a general idea of how the city of Phoenix would support the success of an Airbnb investment property, let’s take a look at some of the real estate market statistics. All numbers are provided by Mashvisor’s investment property calculator:
- Median House Price: $329,081
- Monthly Airbnb Rental Income: $1,431
- Airbnb Rental Cap Rate: 1.97%
- Airbnb Rental Cash on Cash Return: 1.97%
Due to the high median house price coupled with low days on market (69 as of February 2018), the Phoenix real estate market is a seller’s market. With the median house price predicted by Zillow to rise by 3.5% over the course of the year, the seller’s market isn’t likely to shift or balance anytime soon. That’s why now is the best time to invest in an Airbnb Phoenix investment property. If a real estate investor was to wait any longer, either he/she will be unable to afford Phoenix real estate investment properties, or he/she will pay more for smaller investment properties that bring less rental income and less of a return on investment.
Don’t wait for house prices to go up! To start looking for and analyzing the best investment properties in the Phoenix real estate market 2018, click here.
Luckily for you, the real estate investor, Mashvisor’s investment property calculator can show you where to invest in real estate in the Phoenix real estate market for more affordable investment properties as well as a higher return on investment. Keep reading to find out which the best neighborhoods in Phoenix for an Airbnb investment property are!
Tourism = Success for an Airbnb Phoenix Investment Property
While it seems that any type of investment property will do well in the Phoenix real estate market 2018, an Airbnb investment property is your best bet. This is thanks to the second booming industry in the city: tourism. Naturally, tourism makes the Phoenix real estate market one of the best places to invest in real estate for an Airbnb investment property.
The tourism in the Phoenix real estate market is driven by a few reasons, sports being a major one. Phoenix is one of the few cities in the US that has franchises in all four major professional sports leagues. Sports fans from all over the nation attend games held in Phoenix’s many sports venues. The accommodation of their choice? An Airbnb investment property! Airbnb rentals tend to have lower rates than hotels in the city, even during high seasons.
Besides the sports factor, Airbnb rentals enjoy high occupancy rates because of the various recreational activities, arts, culture, dining, etc. With 6 scenic lakes so close to Phoenix, tourists come for the natural aspects as well. What more could an Airbnb real estate investor hope for?
Take advantage of the booming tourism in the Phoenix real estate market. Find and analyze Airbnb investment properties now. Click here to get started.
The Success of Airbnb Phoenix Real Estate Investors
The success of an Airbnb Phoenix investment property driven by tourism and the prospering real estate market is not hypothetical. A study revealed that 85% of Airbnb Phoenix real estate investors who rented out their investment property for 30 days or more made over $41 million in revenue. While this study of Airbnb real estate investment was carried out for the year of 2016, Airbnb Phoenix has only grown since. This projects great things for the Airbnb Phoenix real estate market 2018.
The Best Neighborhoods in Phoenix for Airbnb Rentals
It would seem that an Airbnb Phoenix investment property is a great choice for 2018. For the best return on investment, invest in one of the best neighborhoods in Phoenix for Airbnb rentals, according to Mashvisor’s investment property calculator:
South Mountain
- Median House Price: $235,000
- Monthly Airbnb Rental Income: $2,164
- Airbnb Rental Cap Rate: 5.93%
- Airbnb Rental Cash on Cash Return: 5.93%
- Airbnb Occupancy Rate: 48.23%
Deer Valley
- Median House Price: $255,000
- Monthly Airbnb Rental Income: $1,982
- Airbnb Rental Cap Rate: 4.48%
- Airbnb Rental Cash on Cash Return: 4.48%
- Airbnb Occupancy Rate: 37.26%
Alhambra
- Median House Price: $237,000
- Monthly Airbnb Rental Income: $1,574
- Airbnb Rental Cap Rate: 3.38%
- Airbnb Rental Cash on Cash Return: 3.38%
- Airbnb Occupancy Rate: 35.24%
Paradise Valley
- Median House Price: $310,000
- Monthly Airbnb Rental Income: $1,707
- Airbnb Rental Cap Rate: 2.74%
- Airbnb Rental Cash on Cash Return: 2.74%
- Airbnb Occupancy Rate: 32.04%
North Mountain
- Median House Price: $249,900
- Monthly Airbnb Rental Income: $1,410
- Airbnb Rental Cap Rate: 2.29%
- Airbnb Rental Cash on Cash Return: 2.29%
- Airbnb Occupancy Rate: 36.74%
Central City
- Median House Price: $225,000
- Monthly Airbnb Rental Income: $1,075
- Airbnb Rental Cap Rate: 1.44%
- Airbnb Rental Cash on Cash Return: 1.44%
- Airbnb Occupancy Rate: 29.27%
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
Don’t hesitate to invest in an Airbnb Phoenix investment property. With a strong economy bolstered by tourism, an Airbnb rental will succeed in any of the best neighborhoods in Phoenix for real estate investing. You can be confident in that!
Looking for alternative options for Airbnb real estate investing? Read: The 6 Best Cities for Airbnb Investment
