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Phoenix

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 Realtors and Real Estate Agents

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Phoenix  Real Estate Investment Performance
Facts and Market Trends in Phoenix
Homes For Sale
3,656
Airbnb Properties
427
Rental Properties
5,532
Traditional Vacancy rate
6.50%
Airbnb Occupancy Rate
58.04%
Mashmeter
59.96%
Median Price
$391,004
Median Rent Price
$1,666
Price/sqft
$196
Median Days on Market
53
Price to Rent Ratio
22.5
Average Cap Rate
Airbnb
3.28%
Traditional
1.18%
Average Rental Income
Airbnb
$2,625
Traditional
$1,448
 
Median Household Income
$43,960
Population
1,626,078
Transportation in Phoenix
41 / 100
Car-Dependent
36 / 100
Some Transit
52 / 100
Bikeable
Phoenix  Rent Prices
RENTAL STRATEGY STUDIOS 1 ROOM 2 ROOMS 3 ROOMS 4 ROOMS
Airbnb$1,455$1,539$1,768$2,406$3,189
Traditional$2,230$839$1,092$1,296$1,577
Phoenix, AZ - Homes for Sale - Newly Listed
$245,900
MLS 5940449
601 E PALO VERDE Drive #29
Phoenix, AZ 85012
Alahambra
Townhouse
3 beds3 baths1,359 sq.ft.
CAP RATE
Trad. 0.56%Airbnb 1.51%
$263,000
MLS 5940026
34920 N 31st Avenue
Phoenix, AZ 85086
North Gateway
Single Family Residential
4 beds3 baths1,642 sq.ft.
CAP RATE
Trad. 3.91%Airbnb 0.88%
$158,750
MLS 5940340
748 E MORNINGSIDE Drive
Phoenix, AZ 85022
Deer Valley
Townhouse
2 beds1 baths858 sq.ft.
CAP RATE
Trad. 0.89%Airbnb 1.90%
$204,900
MLS 5940333
4234 E SAINT ANNE Avenue
Phoenix, AZ 85042
South Mountain
Single Family Residential
4 beds2 baths1,404 sq.ft.
CAP RATE
Trad. 3.40%Airbnb 6.76%
Top Performing Phoenix Properties
$80,000
MLS 5895184
2412 W CAMPBELL Avenue #317
Phoenix, AZ 85015
Alahambra
Townhouse
2 beds1 baths840 sq.ft.
CAP RATE
Trad. 0.49%Airbnb 7.99%
$299,900
MLS 5916500
3921 W BLOOMFIELD Road
Phoenix, AZ 85029
North Mountain
Single Family Residential
3 beds2 baths2,062 sq.ft.
CAP RATE
Trad. 0.83%Airbnb 7.98%
$442,650
MLS 5923947
2915 E CANNON Drive
Phoenix, AZ 85028
Paradise Valley
Single Family Residential
4 beds2 baths2,146 sq.ft.
CAP RATE
Trad. 1.53%Airbnb 7.87%
$215,000
MLS 5931203
1017 E MEADOWBROOK Avenue
Phoenix, AZ 85014
Encanto
Single Family Residential
4 beds2 baths1,256 sq.ft.
CAP RATE
Trad. 3.16%Airbnb 7.86%
Recently Sold Homes in Phoenix, AZ
$324,000
MLS 5926157
8104 N 11TH Place
Phoenix, AZ 85020
North Mountain
Multi Family
0 beds0 baths0 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$340,000
MLS 5925071
1108 S 33RD Avenue
Phoenix, AZ 85009
Estrella
Multi Family
0 beds0 baths0 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$1,850,000
MLS 5911493
2503 E CLARENDON Avenue
Phoenix, AZ 85016
Camelback East
Multi Family
0 beds0 baths6,372 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$3,900,000
MLS 5891936
2503-2549 E CLARENDON Avenue
Phoenix, AZ 85016
Camelback East
Multi Family
0 beds0 baths0 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
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
$199,000
MLS 5917260
1318 S 1ST Avenue #2
Phoenix, AZ 85003
Central City
Multi Family
0 beds0 baths0 sq.ft.
CAP RATE
Trad. 3.38%Airbnb N/A
$199,000
MLS 5935441
419 N 20TH Street
Phoenix, AZ 85006
Central City
Multi Family
0 beds0 baths0 sq.ft.
CAP RATE
Trad. 2.89%Airbnb N/A
$199,000
MLS 5933338
3215 W JEFFERSON Street
Phoenix, AZ 85009
Estrella
Multi Family
0 beds0 baths0 sq.ft.
CAP RATE
Trad. 2.44%Airbnb N/A
$237,900
MLS 5880992
1626 W GARFIELD Street
Phoenix, AZ 85007
Encanto
Multi Family
0 beds0 baths0 sq.ft.
CAP RATE
Trad. 2.31%Airbnb N/A
Homes Below Median Price in the Phoenix, AZ Real Estate Market
$80,000
MLS 5895184
2412 W CAMPBELL Avenue #317
Phoenix, AZ 85015
Alahambra
Townhouse
2 beds1 baths840 sq.ft.
CAP RATE
Trad. 0.49%Airbnb 7.99%
$299,900
MLS 5916500
3921 W BLOOMFIELD Road
Phoenix, AZ 85029
North Mountain
Single Family Residential
3 beds2 baths2,062 sq.ft.
CAP RATE
Trad. 0.83%Airbnb 7.98%
$442,650
MLS 5923947
2915 E CANNON Drive
Phoenix, AZ 85028
Paradise Valley
Single Family Residential
4 beds2 baths2,146 sq.ft.
CAP RATE
Trad. 1.53%Airbnb 7.87%
$215,000
MLS 5931203
1017 E MEADOWBROOK Avenue
Phoenix, AZ 85014
Encanto
Single Family Residential
4 beds2 baths1,256 sq.ft.
CAP RATE
Trad. 3.16%Airbnb 7.86%
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
$76 per night
Entire home/apt · 1 bed
Charming Coronado Guest House
852
$76 per night
$62 per night
$66 per night
Entire home/apt · 1 bed
Coronado Private Casita
382
Phoenix, AZ Homes for Rent
$950
MLS 5934135
2409 W Washington Avenue
Phoenix, AZ
Estrella
Single Family
4 beds2 baths1,489 sq.ft.
$1,500
MLS 5940218
6767 N 7TH Street #220
Phoenix, AZ
Alahambra
Townhouse
2 beds2 baths1,364 sq.ft.
$1,350
MLS 5940011
1610 N 77TH Glen
Phoenix, AZ
Maryvale
Townhouse
3 beds3 baths1,537 sq.ft.
$1,565
MLS 5940292
18462 N 5TH Avenue
Phoenix, AZ
Deer Valley
Single Family
3 beds2 baths1,632 sq.ft.
Phoenix, AZ Open Houses
Open 11 AM to 2 PM
$640,000
MLS 5921992
6802 N 17TH Place
Phoenix, AZ 85016
Camelback East
Single Family Residential
3 beds2 baths2,050 sq.ft.
CAP RATE
Trad. 0.10%Airbnb 1.53%
Open May-11-2019 12 PM to May-11-2019 02 PM
$399,000
MLS 5919591
7724 N 14TH Street
Phoenix, AZ 85020
Alahambra
Single Family Residential
3 beds2 baths1,859 sq.ft.
CAP RATE
Trad. 0.25%Airbnb 0.83%
Open 9 AM to 4 PM
$450,000
MLS 0015836
15836 N 47th Place
Phoenix, AZ 85032
Paradise Valley
Single Family Residential
3 beds2 baths2,060 sq.ft.
CAP RATE
Trad. 0.76%Airbnb 1.33%
Open 3 PM to 6 PM
$429,500
MLS 5918758
1415 E FLOWER Street
Phoenix, AZ 85014
Encanto
Single Family Residential
4 beds2 baths2,223 sq.ft.
CAP RATE
Trad. 0.71%Airbnb 3.07%
Best Phoenix Neighborhoods for Buying Investment Property
58%
Mashmeter
property price
$349,999
Median
cap rate
4.39%
Traditional
8.04%
Airbnb
rental income
$1,279
Traditional
$2,346
Airbnb
homes for sale
381
occupancy rate
68%
Airbnb
67%
Mashmeter
property price
$507,000
Median
cap rate
3.77%
Traditional
8.21%
Airbnb
rental income
$1,595
Traditional
$3,467
Airbnb
homes for sale
516
occupancy rate
53%
Airbnb
73%
Mashmeter
property price
$244,900
Median
cap rate
4.38%
Traditional
14.52%
Airbnb
rental income
$895
Traditional
$2,963
Airbnb
homes for sale
75
occupancy rate
62%
Airbnb
76%
Mashmeter
property price
$315,900
Median
cap rate
5.64%
Traditional
10.58%
Airbnb
rental income
$1,484
Traditional
$2,786
Airbnb
homes for sale
447
occupancy rate
44%
Airbnb
70%
Mashmeter
property price
$260,000
Median
cap rate
4.60%
Traditional
6.85%
Airbnb
rental income
$997
Traditional
$1,483
Airbnb
homes for sale
370
occupancy rate
55%
Airbnb
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