Phoenix Housing Market 2020: Where to Invest

Your search for cash flow properties in 2020 has led you to the Phoenix housing market. But now it’s time to start conducting a neighborhood analysis to find the best Phoenix neighborhoods for buying rental property. Unless you’re a seasoned Phoenix real estate investor, it wouldn’t be wise to pick a neighborhood without doing your research and analysis first. To help out anyone who is wondering where to invest in Phoenix this year, Mashvisor went ahead and conducted a neighborhood analysis for you. Using our advanced real estate investment software, which is driven by big data and predictive analytics, we’ve put together a comprehensive list of the best places to invest in real estate in Phoenix. We’ve divided the list by the following types of investment properties:

• Airbnb Rentals
• Long Term Rentals

Of course, if you haven’t decided which type of investment property will launch your journey into Phoenix real estate investing, we can help you figure that out first:

What’s the Best Type of Phoenix Investment Property?

Some real estate investors have a preference. They stick to short term rental properties or long term rental properties. But if you haven’t figured this out yet, it’s best to make the call based on return on investment (ROI). So what type of investment property will bring the highest returns in the Phoenix housing market? Airbnb Phoenix rental properties.

Non-owner occupied rentals are legal in the Phoenix housing market. Even though there are taxes and other fees that come with this real estate investment strategy, Airbnb Phoenix investment properties generate the highest cash on cash return on average. Take a look at Mashvisor’s Airbnb data:

• Average Airbnb Daily Rate: $161
• Airbnb Rental Income: $2,684
• Airbnb Cash on Cash Return: 3.2%
• Airbnb Occupancy Rate: 58%

And those are just average statistics for ROI. Here’s a quick peek at some of the Airbnb Phoenix income properties available for sale at the time of writing:

These investment properties were found in seconds using Mashvisor’s rental property finder. Try it out now to find the best Phoenix houses for sale.

Related: Should You Invest in Phoenix Vacation Rentals?

Airbnb vs Renting Out Traditionally in the Phoenix Housing Market

Just to make a strong case for Airbnb Phoenix real estate investments, let’s take a look at what kind of return on investment you can expect for long term rentals in general as well as by property type.

Long Term Rental Properties

• Traditional Rental Income: $1,702
• Traditional Cash on Cash Return: 1.7%

Single Family Rental Properties

• Traditional Rental Income: $1,802
• Traditional Cash on Cash Return: 1.9%

Multi Family Rental Properties

• Traditional Rental Income: $1,725
• Traditional Cash on Cash Return: 1.9%

Townhouse Rentals

• Traditional Rental Income: $1,468
• Traditional Cash on Cash Return: 1.8%

Condo Rental Properties

• Traditional Rental Income: $1,326
• Traditional Cash on Cash Return: 0.6%

Related: Airbnb vs Long Term Rental: Which One Is the Better Real Estate Investment Strategy for You?

As the rental data shows, long term rentals don’t perform as well as Airbnb rental properties in the Phoenix housing market, no matter the property type. Still, they can offer a good return on investment. Single family and multi family homes bring the best returns. Although the average ROIs are low, take a look at some of these investment properties for sale:

Single Family Homes for Sale in Phoenix

Multi Family Homes for Sale in Phoenix

Currently, single family homes outperform multi family homes in Phoenix. Condos don’t seem to perform too well on average in the Phoenix housing market. However, it’s important to remember that these are just averages. Using Mashvisor’s rental property finder, you’re sure to find high return Phoenix condos for sale.

Now that you have a better idea of what type of Phoenix rental property to look for, let’s dive into our list of the best neighborhoods in the city.

The Best Places to Invest in the Phoenix Housing Market 2020

Start your Phoenix property search in one of the following neighborhoods if you’re looking for a good return on investment:

The Best Neighborhoods in Phoenix for Airbnb for Sale

#1. Paradise Valley

• Median Property Price: $362,497
• Price per Square Foot: $212
• Average Airbnb Daily Rate: $274
• Airbnb Rental Income: $3,675
• Airbnb Cash on Cash Return: 5.6%
• Airbnb Occupancy Rate: 56%

#2. Central City

• Median Property Price: $276,012
• Price per Square Foot: $220
• Average Airbnb Daily Rate: $105
• Airbnb Rental Income: $2,825
• Airbnb Cash on Cash Return: 5.0%
• Airbnb Occupancy Rate: 71%

#3. North Mountain

• Median Property Price: $341,740
• Price per Square Foot: $182
• Average Airbnb Daily Rate: $158
• Airbnb Rental Income: $2,735
• Airbnb Cash on Cash Return: 4.3%
• Airbnb Occupancy Rate: 55%

#4. Alhambra

• Median Property Price: $336,879
• Price per Square Foot: $184
• Average Airbnb Daily Rate: $109
• Airbnb Rental Income: $2,411
• Airbnb Cash on Cash Return: 3.7%
• Airbnb Occupancy Rate: 62%

#5. North Gateway

• Median Property Price: $533,071
• Price per Square Foot: $195
• Average Airbnb Daily Rate: $228
• Airbnb Rental Income: $3,260
• Airbnb Cash on Cash Return: 3.1%
• Airbnb Occupancy Rate: 55%

Start your search for Airbnb for sale in the Phoenix housing market now.

The Best Neighborhoods in Phoenix for Long Term Rental Properties for Sale

#1. New Village

• Median Property Price: $421,106
• Price per Square Foot: $174
• Price to Rent Ratio: 14
• Traditional Rental Income: $2,494
• Traditional Cash on Cash Return: 2.7%

#2. South Mountain

• Median Property Price: $277,759
• Price per Square Foot: $174
• Price to Rent Ratio: 15
• Traditional Rental Income: $1,568
• Traditional Cash on Cash Return: 2.5%

#3. Maryvale

• Median Property Price: $211,190
• Price per Square Foot: $149
• Price to Rent Ratio: 14
• Traditional Rental Income: $1,244
• Traditional Cash on Cash Return: 2.2%

#4. Alhambra

• Median Property Price: $336,879
• Price per Square Foot: $184
• Price to Rent Ratio: 18
• Traditional Rental Income: $1,602
• Traditional Cash on Cash Return: 2.2%

#5. Estrella

• Median Property Price: $239,672
• Price per Square Foot: $143
• Price to Rent Ratio: 15
• Traditional Rental Income: $1,292
• Traditional Cash on Cash Return: 2.1%

Find a profitable long term rental property in the Phoenix housing market now.

If you prefer to do things yourself when it comes to real estate investment analysis, then go ahead and conduct your neighborhood research using Mashvisor’s real estate heatmap.

Learn More: Real Estate Heatmap: A Revolutionary Tool for Neighborhood Analysis

You Know Where to Invest in the Phoenix Real Estate Market, So Get Started!

You know that Airbnb Phoenix income properties rule the market and you also know where to start looking for an investment property, regardless of your rental strategy. To invest in Phoenix real estate today, sign up for a 7-day free trial with Mashvisor. Not only will this help you quickly find Phoenix homes for sale in the neighborhood of your choice, but it will give you access to the real estate investment software you need to analyze any property for sale (MLS or even off market properties in the Phoenix housing market).

Want to learn more about the Phoenix real estate market? Check out our in-depth Phoenix real estate market report.