Top LocationsInvesting in Tempe Real Estate in 2020 Is a Must by Hamza Abdul-Samad January 4, 2020December 24, 2019 by Hamza Abdul-Samad January 4, 2020December 24, 2019The Arizona housing market was one of the top markets in the Southwest in 2019 and is forecast to be a great place to invest in real estate in 2020. And many local markets, such as the Phoenix housing market and Scottsdale housing market, are expected to remain profitable in 2020. However, today, we’ll talk about one of the state’s most underrated markets: the Tempe real estate market. Specifically, we’ll go over:How the Tempe AZ real estate market is performingWhy investing in Tempe real estate is a must for 2020Where you should invest in the Tempe housing marketRelated: 10 Best Places to Invest in Real Estate in 2020Tempe Real Estate Market: Mashvisor’s Investment DataReal estate data is the key to understanding rental markets. Therefore, to understand the performance of the Tempe real estate market 2020, we need to understand its data. We’ve compiled the data of Tempe AZ real estate from Mashvisor’s real estate investment calculator. To learn more about our investment property calculator, click here! In the meantime, take a look at Tempe’s real estate data.Median Property Price: $384,332Price per Square Foot: $219Price-to-Rent Ratio: 19Traditional Rental Income: $1,665Traditional Cap Rate / Cash on Cash Return: 1.4%Airbnb Rental Income: $2,666Airbnb Cap Rate / Cash on Cash Return: 3.1%Airbnb Occupancy Rate: 55.4%Related: 5 Best Real Estate Investment Tools for 2020Why You Should Invest in Tempe Real Estate in 2020You now know how the Tempe AZ real estate market is performing. We’ll combine that data with Tempe real estate market trends to show you why investing here is a must in 2020.Traditional and Airbnb Tempe Rental Properties Will Be LucrativeThe most important feature of Tempe AZ real estate is its profitability. Not only is traditional real estate investing lucrative, but Airbnb Tempe is as well. As seen from Mashvisor’s data, the traditional and Airbnb rental income averages are $1,665 and $2,666, respectively. With the continuing demand for rental properties, Tempe real estate investing will be just as profitable in 2020.Related: Airbnb Rental Income: How Much Should You Be Making?Tempe Real Estate Will Have a High Appreciation Rate in 2020Tempe AZ real estate is profitable for rental income and appreciation. Tempe has been one of the best rental investment markets for appreciation, even during the 2008 housing market crisis. According to NeighborhoodScout, the Tempe housing market appreciated by 49.78% over the last 10 years. This high rate places Tempe in the top 10% for national real estate appreciation. In 2019, the Tempe real estate market appreciated by 4.5%, according to Zillow. This rate was higher than about 82% of other rental markets in the nation. For 2020, Zillow projects Tempe real estate values to rise by 4%.Tempe Airbnb Laws Will Likely Be Established in 2020As it pertains to Airbnb Tempe’s legality, there are no official Airbnb regulations set as of yet. However, in September 2019, an ordinance for Tempe Airbnb laws was proposed. Tempe’s City Council proposed short-term rental regulations in an effort to prevent noise issues, increased rent, and residential complaints. Fortunately, the proposed ordinance is meant to regulate, not restrict, Tempe short-term rentals. According to Tempe Vice Mayor Lauren Kuby, “this proposed new ordinance offers assistance, if limited, to allow us to begin to manage short-term rentals”. The proposed ordinance does not restrict the use of non-owner occupied properties for Airbnb real estate investing. Other proposed Tempe Airbnb laws from the ordinance include:An official short-term rental definitionOwner and emergency contact information requirement which should also be displayed in the STRCompliance with all federal and local laws, rules, and regulationsTransaction privilege tax license requirementTempe real estate investors should obviously keep an eye on any developments of the ordinance in 2020.Tempe Real Estate Will Be in High DemandAbove all, Tempe real estate will be in high demand in 2020. Tempe is a hot seller’s market, as opposed to a buyer’s market, according to Zillow. There are a variety of reasons why. For starters, Tempe is experiencing high economic growth. Over the last year, the city’s job market grew by 3.3%, well above the national average. For the next 10 years, Tempe’s job market is predicted to grow by a whopping 49.9%. For reference, the US average for the next 10 years is 33.5%. With such economic growth, investors can expect high demand for houses for sale in Tempe, AZ for years to come.Demand for Tempe rental properties will also be high. As seen from Mashvisor’s real estate data, Tempe’s price-to-rent ratio is 19. This indicates that for a Tempe resident, it is more affordable to rent a property than to buy one. One of the reasons why this is the case is rising Tempe house prices, due to high appreciation. Tempe’s high rental demand is consistent with the fact that 60% of the city’s residents reside in Tempe rental properties.The Best Neighborhoods in Tempe for the Traditional Rental StrategyWe’ll now tackle the final purpose of this blog: showing you where to invest in real estate in Tempe in 2020. According to Mashvisor, these are the best neighborhoods for Tempe homes for sale in 2020:East RioMedian Property Price: $297,938Price per Square Foot: $199Price-to-Rent Ratio: 10Traditional Rental Income: $2,493Traditional Cap Rate / Cash on Cash Return: 5.7%Lindon ParkMedian Property Price: $305,000Price per Square Foot: $198Price-to-Rent Ratio: 14Traditional Rental Income: $1,772Traditional Cap Rate / Cash on Cash Return: 2.9%DuskfireMedian Property Price: $463,870Price per Square Foot: $167Price-to-Rent Ratio: 18Traditional Rental Income: $2,125Traditional Cap Rate / Cash on Cash Return: 2.6%NTNA – Indian BendMedian Property Price: $333,983Price per Square Foot: $246Price-to-Rent Ratio: 15Traditional Rental Income: $1,819Traditional Cap Rate / Cash on Cash Return: 2.6%Start your search for a Tempe real estate investment now. Search for My Investment PropertyThe Best Neighborhoods in Tempe for the Airbnb Rental StrategyWhat about Airbnb Tempe? According to Mashvisor, these are the best neighborhoods for buying an Airbnb income property for sale:Knoell GardensMedian Property Price: $242,233Price per Square Foot: $195Price-to-Rent Ratio: 16Airbnb Rental Income: $3,502Airbnb Cap Rate / Cash on Cash Return: 7.5%Airbnb Occupancy Rate: 58.8%EvergreenMedian Property Price: $324,900Price per Square Foot: $199Price-to-Rent Ratio: 17Airbnb Rental Income: $3,550Airbnb Cap Rate / Cash on Cash Return: 6.4%Airbnb Occupancy Rate: 57.1%Meyer ParkMedian Property Price: $375,000Price per Square Foot: $177Price-to-Rent Ratio: 16Airbnb Rental Income: $3,757Airbnb Cap Rate / Cash on Cash Return: 5.9%Airbnb Occupancy Rate: 60.9%DuskfireMedian Property Price: $463,870Price per Square Foot: $167Price-to-Rent Ratio: 18Airbnb Rental Income: $3,745Airbnb Cap Rate / Cash on Cash Return: 5.8%Airbnb Occupancy Rate: 46.7%All in all, the Tempe real estate market is one of the best for buying an investment property in 2020. To start searching for Tempe investment properties for sale, CLICK HERE to start your 14-day FREE trial with Mashvisor!For more on making money in real estate and finding an income property for sale, check out Mashvisor’s real estate blog! Start Your Investment Property Search! START FREE TRIAL AirbnbAirbnb RegulationsArizonaNeighborhoodSellers MarketTraditional 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 The Best Real Estate Investment Options for Women Next Post What Is Cash on Cash Return in Real Estate? 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