Phoenix Real Estate Market Analysis

Houses for Sale in Phoenix

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Phoenix is the capital of Arizona and is located in the south-central part of the state, falling within the northeastern regions of the Sonoran Desert. The city has a population of over 1.6 million, making it the most populated city in the State of Arizona and the 5th most populous city in the United States. The city is expected to experience population growth that is well above the national average thanks to the strong net migration. This, along with the fact that the percentage of the population under the age of 44 is high, boosts economic activity in Phoenix. And with around 47.2% of residents living in rental properties rather than owning their own homes (according to NeighborhoodScout), investing in a Phoenix rental property is a great option.

Phoenix is not only the capital of Arizona, but with a diverse and strong economy, it’s the state’s economic center too. The Phoenix rental market will benefit from the fact that employment growth in the coming years will be twice the national growth rate. This is likely due to the continuing trend of major companies relocating their offices to Phoenix from more expensive cities. These companies can find more affordable real estate in the city than in other major metropolitan areas around the country. A leading industry in Phoenix is tourism. The city welcomes more than 10 million visitors who come to enjoy the major attractions like the Desert Botanical Garden and the various hiking trails and national parks. This provides ample real estate investment opportunities in the Phoenix short-term rental market. Other major industries include manufacturing, technology, and service industries.

The Phoenix real estate market is one of the top 3 markets in the Western Mountain Region of the US according to the annual PWC real estate report. Based on the report, activity is strong in all real estate sectors. However, the affordability for single-family homes is down, while housing development is up, which should balance the Phoenix housing market in the near future. And because it is affordable compared to other major population centers, Phoenix is actually one of the best places to invest in real estate.

Phoenix  Real Estate Investment Performance

Facts and Market Trends in Phoenix
Homes For Sale2,896
Airbnb Properties2,529
Rental Properties3,676
Traditional Vacancy rate6.00%
Airbnb Occupancy Rate51.51%
Mashmeter46.80%
Median Price$499,450
Median Rent Price$3,021
Price/sqft$368
Median Days on Market52
Price to Rent Ratio25.6
Average Cap Rate
Airbnb3.78%
Traditional4.87%
Average Rental Income
Airbnb$2,440
Traditional$2,068
 
Median Household Income$64,927
Population1,625,000
Transportation in Phoenix
41 / 100
Car-Dependent
36 / 100
Some Transit
56 / 100
Bikeable
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Phoenix  Rent Prices

RENTAL STRATEGY STUDIOS 1 BEDROOM 2 BEDROOMS 3 BEDROOMS 4 BEDROOMS
Airbnb$1,358$1,437$1,641$2,577$3,357
Traditional$2,056$1,520$1,950$2,249$2,791

Phoenix, AZ - Homes for Sale - Newly Listed

10919 W HEATHERBRAE Drive
Phoenix, AZ 85037
Maryvale
Other
3 beds2 baths1,522 sq.ft.
CAP RATE
Trad. 6.65%Airbnb 4.61%
8141 W Pueblo Ave
Phoenix, AZ 85043
Estrella
Single Family Residential
3 beds baths1,830 sq.ft.
CAP RATE
Trad. 2.39%Airbnb 1.11%
719 E Circle Rd
Phoenix, AZ 85020
Alhambra
Single Family Residential
4 beds baths2,715 sq.ft.
CAP RATE
Trad. 1.00%Airbnb 0.60%
17434 N Paradise Park Dr
Phoenix, AZ 85032
Paradise Valley
Single Family Residential
3 beds baths1,310 sq.ft.
CAP RATE
Trad. 3.51%Airbnb 2.78%

Top Performing Phoenix Properties

2814 E Roeser Rd
Phoenix, AZ 85040
South Mountain
Single Family Residential
1 beds baths408 sq.ft.
CAP RATE
Trad. 7.31%Airbnb 7.62%
1625 W North Lane
Phoenix, AZ 85021
North Mountain
Other
4 beds1 baths1,385 sq.ft.
CAP RATE
Trad. 7.10%Airbnb 7.48%
1602 W MARCO POLO Road
Phoenix, AZ 85027
Deer Valley
Other
4 beds2 baths1,559 sq.ft.
CAP RATE
Trad. 4.93%Airbnb 7.43%
6320 N 30TH Drive
Phoenix, AZ 85017
Alhambra
Other
5 beds2 baths2,358 sq.ft.
CAP RATE
Trad. 3.67%Airbnb 7.43%

Recently Sold Homes in Phoenix, AZ

6629 N 14th St
Phoenix, AZ 85014
Encanto
Single Family Residential
3 beds baths1,890 sq.ft.
CAP RATE
Trad. 1.51%Airbnb 0.59%
5124 N 31st Pl #537
Phoenix, AZ 85016
Camelback East
Condo/Coop
2 beds baths1,319 sq.ft.
CAP RATE
Trad. 1.15%Airbnb -0.70%
6042 E Quail Ave
Phoenix, AZ 85054
Paradise Valley
Single Family Residential
5 beds baths3,487 sq.ft.
CAP RATE
Trad. N/AAirbnb 3.49%
108 W Elm St
Phoenix, AZ 85013
Encanto
Single Family Residential
4 beds baths2,111 sq.ft.
CAP RATE
Trad. 2.34%Airbnb 2.27%

Property Value Changes and Real Estate Appreciation in the Phoenix Housing Market

Historical real estate appreciation has placed the Phoenix housing market among the top markets for growth in the US. Since Q1 of 2000, Phoenix properties have experienced a total appreciation of 107% with an average annual growth rate of 3.9% (according to NeighborhoodScout). Zillow forecasts a 5.4% appreciation of local property values over the next year. So, buying a Phoenix investment property now - while it’s affordable - will be a smart move and will allow you to enjoy appreciation in the coming years.

Real estate investors should keep in mind that the Phoenix real estate market is currently a hot seller’s market. This is mostly due to the tight housing inventory which most major cities across the US are suffering from. Still, property prices have not been driven up to unaffordable ranges, which makes the market a great entry point for beginner investors nonetheless.

Phoenix, AZ Top Multi Family Homes

320 N 20th Ave
Phoenix, AZ 85009
Encanto
Multi Family
beds baths0 sq.ft.
CAP RATE
Trad. 3.30%Airbnb N/A
8841 N 2nd Way
Phoenix, AZ 85020
North Mountain
Multi Family
8 beds baths0 sq.ft.
CAP RATE
Trad. 3.13%Airbnb N/A
2020 W Cactus Rd
Phoenix, AZ 85029
North Mountain
Multi Family
8 beds baths0 sq.ft.
CAP RATE
Trad. 0.51%Airbnb N/A
2850 W Pierce St
Phoenix, AZ 85009
Encanto
Multi Family
beds baths0 sq.ft.
CAP RATE
Trad. 0.37%Airbnb N/A

Homes Below Median Price in the Phoenix, AZ Real Estate Market

2814 E Roeser Rd
Phoenix, AZ 85040
South Mountain
Single Family Residential
1 beds baths408 sq.ft.
CAP RATE
Trad. 7.31%Airbnb 7.62%
1625 W North Lane
Phoenix, AZ 85021
North Mountain
Other
4 beds1 baths1,385 sq.ft.
CAP RATE
Trad. 7.10%Airbnb 7.48%
1602 W MARCO POLO Road
Phoenix, AZ 85027
Deer Valley
Other
4 beds2 baths1,559 sq.ft.
CAP RATE
Trad. 4.93%Airbnb 7.43%
6320 N 30TH Drive
Phoenix, AZ 85017
Alhambra
Other
5 beds2 baths2,358 sq.ft.
CAP RATE
Trad. 3.67%Airbnb 7.43%

Phoenix Airbnb Growth and Regulations

Because the city sees so many tourists annually, it’s no surprise that Airbnb growth is massive in the Phoenix housing market. Airbnb Phoenix hosts received the highest number of guests in the state in 2016, bringing in a revenue of $4,112,000.

Luckily, Airbnb real estate investors can benefit from this rental strategy in the city as the practice of renting out non-owner occupied properties is legal in Phoenix. In fact, Arizona Airbnb regulations state that all local municipalities must allow short-term rentals and place no limit on the number of Airbnb investment properties an investor can own and operate in the city. There is also no cap on the number of days an Airbnb rental property can be occupied by guests, which is a common regulation in many cities across the US.

As an Airbnb hosts, you may have to apply for a license depending on your Airbnb rental property listing, so make sure to check with the city codes. Airbnb and other vacation rental websites are responsible for collecting taxes on bookings and remitting them to the state. Keep in mind that while the practice is legal, Homeowners Associations may still legally ban short-term rentals in their complexes.

Phoenix, AZ Top Airbnb Homes

Entire home/apt · 1 bed
Charming Coronado Guest House
1511
Entire home/apt · 2 beds
Centrally Located Renovated Guest House
1185
Entire home/apt · 1 bed
Coronado Private Casita
1055

Phoenix, AZ Homes for Rent

9453 W BERKELEY Road
Phoenix, AZ 85037
Maryvale
Other
3 beds2 baths1,588 sq.ft.

Phoenix, AZ Open Houses

110 E ANDERSON Avenue
Phoenix, AZ 85022
North Mountain
Other
2 beds2 baths1,256 sq.ft.
CAP RATE
Trad. 2.41%Airbnb 1.15%
110 W ROSEMONTE Drive
Phoenix, AZ 85027
Deer Valley
Other
3 beds2 baths1,752 sq.ft.
CAP RATE
Trad. 3.14%Airbnb 2.26%
1601 E MUIRWOOD Drive
Phoenix, AZ 85048
Ahwatukee Foothills
Other
3 beds3 baths3,112 sq.ft.
CAP RATE
Trad. 1.17%Airbnb 1.07%
3437 W LANGUID Lane
Phoenix, AZ 85086
North Gateway
Other
4 beds2 baths2,423 sq.ft.
CAP RATE
Trad. 3.33%Airbnb 2.55%

Best Phoenix Neighborhoods for Buying Investment Property

Desert View
Phoenix, AZ
58%
Mashmeter
property price
699575
Median
cap rate
4.49%
Traditional
5.11%
Airbnb
rental income
$2,618
Traditional
$2,979
Airbnb
homes for sale
1
occupancy rate
41%
Airbnb
Maryvale
Phoenix, AZ
57%
Mashmeter
property price
360000
Median
cap rate
7.33%
Traditional
5.64%
Airbnb
rental income
$2,199
Traditional
$1,691
Airbnb
homes for sale
1
occupancy rate
47%
Airbnb
Deer Valley
Phoenix, AZ
55%
Mashmeter
property price
450000
Median
cap rate
5.01%
Traditional
5.93%
Airbnb
rental income
$1,879
Traditional
$2,224
Airbnb
homes for sale
1
occupancy rate
51%
Airbnb
Laveen
Phoenix, AZ
55%
Mashmeter
property price
451225
Median
cap rate
5.78%
Traditional
3.61%
Airbnb
rental income
$2,175
Traditional
$1,359
Airbnb
homes for sale
1
occupancy rate
43%
Airbnb
Estrella
Phoenix, AZ
51%
Mashmeter
property price
389621
Median
cap rate
4.46%
Traditional
4.94%
Airbnb
rental income
$1,447
Traditional
$1,604
Airbnb
homes for sale
1
occupancy rate
36%
Airbnb
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