Top LocationsWhere to Invest in the Phoenix Real Estate Market Right Now by Hamza Abdul-Samad July 16, 2019July 16, 2019 by Hamza Abdul-Samad July 16, 2019July 16, 2019According to the PwC’s Emerging Trends in Real Estate report, the Phoenix real estate market is one of the top rental markets for overall real estate prospects in 2019. Because it’s been given that title, let’s take a closer look at this market and answer the following questions:How is the Phoenix housing market performing statistically?Why should you invest in Phoenix real estate?What are the best neighborhoods in the Phoenix real estate market?Keep reading to find out!Phoenix Real Estate Market 2019: City-Level StatisticsFor starters, how is the Phoenix housing market performing in 2019? According to Mashvisor’s rental property calculator, which you can learn about by clicking here, it is a top rental market in the Arizona real estate market and the US real estate market as a whole. Here is the data for the Phoenix real estate market, according to Mashvisor’s calculator.Related: Mashvisor’s Rental Property Calculator: A Guide for Beginner Real Estate Investors PricingMedian Property Price: $392,891Price per Square Foot: $196Price-to-Rent Ratio: 21Traditional InvestingRental Income: $1,530Cap Rate / Cash on Cash Return: 1.4%Airbnb InvestingRental Income: $2,599Cap Rate / Cash on Cash Return: 3.2%Occupancy Rate: 50%Note: Cap rate and cash on cash return are equal as financing is not taken into account. If you want to see what kind of cash on cash return you can get for individual investment properties for sale based on your financing, sign up for Mashvisor.5 Reasons to Invest in the Phoenix Real Estate Market in 2019So, why should real estate investors invest in Phoenix real estate? There is a multitude of reasons. The Phoenix real estate market 2019 provides a lot of cash flow, appreciation, affordable Phoenix investment properties, and traditional and Airbnb Phoenix opportunities.Cash FlowThe bread and butter of any rental property is rental income. For those purchasing Phoenix investment properties, there are plenty of opportunities for generating rental income. According to Mashvisor, the average rental income for traditional and short-term rentals are $1,530 and $2,599, respectively. Return on investment, or ROI, is also high for both strategies, at 1.4% and 3.2% for traditional and Airbnb respectively. It’s important to note, however, that these figures are only averages. Real estate investors can find a Phoenix investment property that generates more in terms of rental income and ROI. Just take a look at some of these profitable investment properties for sale, courtesy of Mashvisor’s Property Finder.AppreciationA Phoenix investment property is the gift that keeps on giving. Not only does a Phoenix real estate investment generate rental income in profit, but it also appreciates at high rates. According to NeighborhoodScout, the Phoenix housing market has been in the top 20 percent for national appreciation during the last decade. The market has appreciated by over 37 percent during that time. It also appreciated by 8.42% during the last 12 months. Relative to the Arizona real estate market, the Phoenix real estate market has an appreciation rate that is higher than 50% of the state’s cities and towns.AffordabilityWhile the Phoenix rental market is closer to a seller’s market than a buyer’s market (according to Zillow), it is still relatively affordable. The Phoenix median property price is roughly $393,000. While this is more than the national median of $308,000, it is lower than the median property price in the Arizona real estate market, which, according to Mashvisor, is $423,000.Related: Here Are the 10 Most Affordable Real Estate Markets for 2019Profitable Traditional InvestingNow onto rental strategies in the Phoenix real estate market. Traditional investing is a great strategy in the city. There is a clear and consistent demand for traditional Phoenix investment properties, as 47 percent of residents live in a rental property.Phoenix is also experiencing economic growth. During the last year, the Phoenix job market increased by 3.3%, which is more than the national average growth rate of 2.6%. The job market is on a positive trajectory, as the projected 10-year job growth is estimated to be 48.2%, which is well above the national average of 33.5%. The city’s job market growth is, and will continue to be, a primary attractant for long-term residents, and thus long-term investing. To top it all off, Phoenix is ranked as one of the best cities to retire and one of the cities with the best public schools.Profitable Airbnb InvestingPhoenix vacation rentals are another successful type of investment. Airbnb Phoenix hosts earned over $50 million in 2016, with the majority of hosts renting out their property for more than 30 days per year.Before even considering investing in Airbnb Phoenix, real estate investors need to know the answer to a vital question: Is Airbnb legal in Phoenix? Fortunately, the answer is yes. There are a few regulations, however, that investors need to be aware of. Phoenix hosts are required to apply for a short-term rental license. There are also three types of taxes hosts need to pay, including a State Transaction Privilege Tax (5.5%), a City Transient Lodging Tax (3%), and a City Privilege Tax (1.75%). You can learn more about some of the most important Airbnb regulations in Phoenix on the Airbnb Help Page. Find a Profitable Airbnb Investment PropertyRelated: The 8 Most Profitable Airbnb Cities in the Summer of 2019The Best Neighborhoods in Phoenix for Traditional RentalsWhat is the best place to invest in real estate in Phoenix for traditional purposes? According to Mashvisor’s neighborhood data, the best neighborhoods in Phoenix are Deer Valley, Estrella, and South Mountain.Deer ValleyPricingMedian Property Price: $304,663Price per Square Foot: $166Price-to-Rent Ratio: 14Traditional InvestingRental Income: $1,882Cap Rate / Cash on Cash Return: 3.6%EstrellaPricingMedian Property Price: $226,097Price per Square Foot: $131Price-to-Rent Ratio: 16Traditional InvestingRental Income: $1,191Cap Rate / Cash on Cash Return: 1.9%South MountainPricingMedian Property Price: $263,500Price per Square Foot: $159Price-to-Rent Ratio: 17Traditional InvestingRental Income: $1,334Cap Rate / Cash on Cash Return: 1.9%The Best Neighborhoods in Phoenix for Airbnb RentalsWhat about Airbnb? Where to invest in real estate for Airbnb Phoenix? According to Mashvisor, the best neighborhoods in Phoenix for Airbnb are Central City, North Mountain, and Deer Valley.Central CityPricingMedian Property Price: $265,284Price per Square Foot: $205Price-to-Rent Ratio: 19Airbnb InvestingRental Income: $3,198Cap Rate / Cash on Cash Return: 8.1%Occupancy Rate: 62%North MountainPricingMedian Property Price: $334,970Price per Square Foot: $170Price-to-Rent Ratio: 23Airbnb InvestingRental Income: $3,248Cap Rate / Cash on Cash Return: 6.1%Occupancy Rate: 43%Deer ValleyPricingMedian Property Price: $304,663Price per Square Foot: $166Price-to-Rent Ratio: 14Airbnb InvestingRental Income: $2,489Cap Rate / Cash on Cash Return: 3.8%Occupancy Rate: 47.4%The Bottom Line: Invest in the Phoenix Real Estate Market TodayThe Phoenix real estate market is one of the top markets for US real estate in 2019. With high profitability, relative affordability, and success with traditional and Airbnb rentals, the Phoenix market has what it takes to appeal to all types of investors.To start searching for Phoenix houses for sale, click here to start your 14-day free trial with Mashvisor! Start Your Investment Property Search! START FREE TRIAL AirbnbNeighborhoodPhoenix AZTraditional 0FacebookTwitterGoogle +PinterestLinkedin Hamza Abdul-SamadHamza is a long-time writer at Mashvisor. With a focus on real estate investing tips, concepts, and top investing locations, he aims to help all aspiring investors who come across his blogs to hit the bank with their investment property. Previous Post What Is an iBuyer? Should You Sell Your Home to One? 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