The Arizona housing market is a strong market in 2019. In fact, it could be the best state to invest in real estate thanks to its booming economy and affordability. If you want to make the best out of it, invest in the best places to buy rental property.
Reasons to Invest in the Arizona Housing Market
Real estate investing is a great way to diversify your portfolio and build wealth. However, in order to do this, you need to invest in the right housing market. So before we reveal to you the best places to buy investment property in the state, we’re going to dive into the Arizona housing market and cover why it’s smart to invest there this year.
Related: What Are the Best States to Buy Real Estate in 2019?
1) There’s Job Growth
The major factor for the strength of the Arizona housing market is job growth. Arizona is one of the top ten states in the country for job growth. The economy experienced a 4.2 percent year-over-year increase in the first quarter of this year which is its fastest growth rate since 2007. This economic success will support the continued growth of the Arizona housing market for the year.
2) It’s Landlord Friendly
Before you buy rental property anywhere, check how landlord friendly the area is. Assessing a rental market includes covering landlord-tenant laws because they could make operating your rental property much easier or much more difficult. You need to be informed on how lease agreements, security deposits, and evictions will be handled there.
Luckily, the state of Arizona has legislation that benefits landlords. For example, dealing with bad tenants won’t be a problem because the eviction process is fast and easy. There are also non-compliance laws. These laws oblige tenants to pay their rent and supply accurate information on their lease and application.
Related: Invest in Real Estate in the 5 Most Landlord Friendly States
3) Airbnb Is Legal
The short term rental industry has been booming for the past couple of years. While many people see this as a positive, some see it as a threat. Those opposed have created quite the controversy regarding online platforms that promote short term rentals like Airbnb, VRBO, and HomeAway. This hasn’t gone unnoticed by legislators, and new laws and bans have been passed in various cities across the country. So this leads to the question, “Is Airbnb legal in Arizona?”
Good news for Airbnb investors in the Arizona housing market. Back in January of 2017, a new law was enacted in Arizona declaring that cities, towns, and counties cannot place any restrictions on short-term rental properties just because the property is not classified as a hotel. This law was specifically targeted towards municipalities that were attempting to ban Airbnb and similar rental services from operating in the area.
The law states that there are no restrictions on the number of properties an investor can own and rent using these short-term online rental services. Also, there is no limit to the number of days a home can be rented out on Airbnb in a certain area. This is exactly what a short term rental operator wants to hear, but there’s one last thing. When searching for Arizona investment properties for sale, make sure to check if they have a homeowner’s association; it is still legal for the HOA to restrict the length of a lease or completely ban short term rentals.
Related: Our Guide to Maximum Airbnb Rental Income in 2019
Where to Invest in the Arizona Housing Market: Traditional Rentals
In addition to the strong economy, Arizona’s climate and affordability make it a great place to live, increasing the demand for long term rentals. But when most people hear “Arizona real estate market“, they think of the big cities like Phoenix and Scottsdale. You can definitely find profitable investments there, but you shouldn’t forget about the potential of other local markets.
Mashvisor’s investment property calculator told us exactly where investment properties perform best in the Arizona housing market. These best cities in Arizona for traditional long term rentals were chosen based on the key metrics and measures of a profitable Arizona real estate investment.
Tonto Basin- Gila County
- Median Property Price: $217,320
- Price Per Square Foot: $115
- Price to Rent Ratio: 15
- Monthly Traditional Rental Income: $1,200
- Traditional Cash on Cash Return: 12%
Bowie- Cochise County
- Median Property Price: $59,900
- Price Per Square Foot: $59
- Price to Rent Ratio: 4
- Average Days on Market: 311
- Monthly Traditional Rental Income: $1,190
- Traditional Cash on Cash Return: 11%
Concho- Apache County
- Median Property Price: $188,064
- Price Per Square Foot: $102
- Price to Rent Ratio: 13
- Average Days on Market: 73
- Monthly Traditional Rental Income: $1,240
- Traditional Cash on Cash Return: 8%
Kearny- Pinal County
- Median Property Price: $135,646
- Price Per Square Foot: $82
- Price to Rent Ratio: 8
- Average Days on Market: 117
- Monthly Traditional Rental Income: $1,385
- Traditional Cash on Cash Return: 8%
Do you have a free Mashvisor account? Use our Property Finder to find lucrative investment properties in the Arizona housing market that match your criteria in a matter of minutes!
Related: Traditional Rental Strategy: Best Cities for Rental Income 2019
Where to Invest in the Arizona Housing Market: Short-Term Rentals
If you’re buying a rental property in the Arizona housing market to rent out on Airbnb, you need to know where short term rentals perform best. These are the cities with the best rental properties for Airbnb investors.
Sierra Vista- Cochise County
- Median Property Price: $214,609
- Price per Square Foot: $111
- Price to Rent Ratio: 18
- Average Days on Market: 77
- Monthly Airbnb Rental Income: $2,295
- Airbnb Cash on Cash Return: 6%
- Airbnb Occupancy Rate: 61%
Page- Coconino County
- Median Property Price: $328,243
- Price per Square Foot: $160
- Price to Rent Ratio: 19
- Average Days on Market: 145
- Monthly Airbnb Rental Income: $3,053
- Airbnb Cash on Cash Return: 6%
- Airbnb Occupancy Rate: 54%
Sahuarita- Pima County
- Median Property Price: $248,135
- Price per Square Foot: $125
- Price to Rent Ratio: 15
- Average Days on Market: 59
- Monthly Airbnb Rental Income: $2,850
- Airbnb Cash on Cash Return: 6%
- Airbnb Occupancy Rate: 74%
Guadalupe- Maricopa County
- Median Property Price: $149,900
- Price per Square Foot: $160
- Price to Rent Ratio: 10
- Monthly Airbnb Rental Income: $1,692
- Airbnb Cash on Cash Return: 5%
- Airbnb Occupancy Rate: 59%
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
