Phoenix Housing market
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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.

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Phoenix  Real Estate Investment Performance
Facts and Market Trends in Phoenix
Homes For Sale
2,800
Airbnb Properties
406
Rental Properties
8,596
Traditional Vacancy rate
6.50%
Airbnb Occupancy Rate
60.21%
Mashmeter
70.74%
Median Price
$410,793
Median Rent Price
$1,680
Price/sqft
$205
Median Days on Market
81
Price to Rent Ratio
23.0
Average Cap Rate
Airbnb
3.09%
Traditional
1.13%
Average Rental Income
Airbnb
$2,552
Traditional
$1,488
 
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$1,489$1,625$1,780$2,462$2,878
Traditional$2,205$871$1,143$1,384$1,658
Phoenix, AZ - Homes for Sale - Newly Listed
Investment Properties for Sale
$145,000
MLS 5975645
4720 N 20TH Avenue
Phoenix, AZ 85015
Alahambra
Townhouse
2 beds2 baths1,260 sq.ft.
CAP RATE
Trad. -0.37%Airbnb 5.01%
Investment Properties for Sale
$185,000
MLS 5976530
3613 W LAMAR Road
Phoenix, AZ 85019
Alahambra
Single Family Residential
3 beds2 baths1,459 sq.ft.
CAP RATE
Trad. 3.19%Airbnb 3.85%
Investment Properties for Sale
$359,900
MLS 5976379
1337 E ESCUDA Drive
Phoenix, AZ 85024
Deer Valley
Single Family Residential
4 beds3 baths2,177 sq.ft.
CAP RATE
Trad. 1.40%Airbnb 5.00%
Investment Properties for Sale
$599,000
MLS 5928429
9626 N 33RD Street NW
Phoenix, AZ 85028
Paradise Valley
Single Family Residential
4 beds3 baths3,754 sq.ft.
CAP RATE
Trad. 0.45%Airbnb 4.51%
Top Performing Phoenix Properties
Investment Properties for Sale
$199,000
MLS 5963602
6239 S 4TH Avenue
Phoenix, AZ 85041
South Mountain
Single Family Residential
3 beds2 baths1,067 sq.ft.
CAP RATE
Trad. 3.17%Airbnb 8.00%
Investment Properties for Sale
$399,000
MLS 5969141
10618 N 26TH Street
Phoenix, AZ 85028
Paradise Valley
Single Family Residential
4 beds3 baths1,902 sq.ft.
CAP RATE
Trad. 1.91%Airbnb 7.93%
Investment Properties for Sale
$335,000
MLS 5947281
1001 E GRISWOLD Road E #30
Phoenix, AZ 85020
North Mountain
Single Family Residential
3 beds3 baths1,989 sq.ft.
CAP RATE
Trad. 0.65%Airbnb 7.89%
Investment Properties for Sale
$265,000
MLS 5950507
1349 W ROSEMONTE Drive
Phoenix, AZ 85027
Deer Valley
Single Family Residential
4 beds2 baths1,640 sq.ft.
CAP RATE
Trad. 3.04%Airbnb 7.81%
Recently Sold Homes in Phoenix, AZ
Investment Properties for Sale
$350,000
MLS 5975919
1821 N 51st Street
Phoenix, AZ 85008
Camelback East
Multi Family
0 beds0 baths0 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
Investment Properties for Sale
$230,000
MLS 5975808
3802 N 57TH Avenue
Phoenix, AZ 85031
Maryvale
Single Family Residential
4 beds2 baths1,840 sq.ft.
CAP RATE
Trad. 1.59%Airbnb N/A
Investment Properties for Sale
$295,000
MLS 5975651
3530 W ACAPULCO Lane
Phoenix, AZ 85053
North Mountain
Single Family Residential
4 beds2 baths1,976 sq.ft.
CAP RATE
Trad. 1.81%Airbnb 1.13%
Investment Properties for Sale
$199,900
MLS 5975630
3622 W CHAMBERS Street
Phoenix, AZ 85041
Laveen
Single Family Residential
3 beds2 baths911 sq.ft.
CAP RATE
Trad. 2.41%Airbnb 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
Investment Properties for Sale
$170,000
MLS 5971585
1023 E OLD SOUTHERN Avenue
Phoenix, AZ 85042
South Mountain
Multi Family
0 beds0 baths0 sq.ft.
CAP RATE
Trad. 3.69%Airbnb N/A
Investment Properties for Sale
$196,000
MLS 5917260
1318 S 1ST Avenue #2
Phoenix, AZ 85003
Central City
Multi Family
0 beds0 baths0 sq.ft.
CAP RATE
Trad. 3.44%Airbnb N/A
Investment Properties for Sale
$199,900
MLS 5960683
5810 S 6TH Street
Phoenix, AZ 85040
South Mountain
Multi Family
0 beds0 baths0 sq.ft.
CAP RATE
Trad. 3.23%Airbnb N/A
Investment Properties for Sale
$220,000
MLS 5974622
351 N 20TH Drive
Phoenix, AZ 85009
Encanto
Multi Family
0 beds0 baths0 sq.ft.
CAP RATE
Trad. 2.74%Airbnb N/A
Homes Below Median Price in the Phoenix, AZ Real Estate Market
Investment Properties for Sale
$199,000
MLS 5963602
6239 S 4TH Avenue
Phoenix, AZ 85041
South Mountain
Single Family Residential
3 beds2 baths1,067 sq.ft.
CAP RATE
Trad. 3.17%Airbnb 8.00%
Investment Properties for Sale
$399,000
MLS 5969141
10618 N 26TH Street
Phoenix, AZ 85028
Paradise Valley
Single Family Residential
4 beds3 baths1,902 sq.ft.
CAP RATE
Trad. 1.91%Airbnb 7.93%
Investment Properties for Sale
$335,000
MLS 5947281
1001 E GRISWOLD Road E #30
Phoenix, AZ 85020
North Mountain
Single Family Residential
3 beds3 baths1,989 sq.ft.
CAP RATE
Trad. 0.65%Airbnb 7.89%
Investment Properties for Sale
$265,000
MLS 5950507
1349 W ROSEMONTE Drive
Phoenix, AZ 85027
Deer Valley
Single Family Residential
4 beds2 baths1,640 sq.ft.
CAP RATE
Trad. 3.04%Airbnb 7.81%
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
Phoenix Airbnb
$74 per night
Entire home/apt · 1 bed
Charming Coronado Guest House
873
Phoenix Airbnb
$78 per night
Phoenix Airbnb
$64 per night
Phoenix Airbnb
$65 per night
Entire home/apt · 1 bed
Coronado Private Casita
425
Phoenix, AZ Homes for Rent
Investment Properties for Sale
$1,100
MLS 5246000
5246 N 20th st #2
Phoenix, AZ
Camelback East
Apartment
0 beds0 baths0 sq.ft.
Investment Properties for Sale
$1,750
MLS 5976919
Investment Properties for Sale
$2,295
MLS 5976604
1621 W ACOMA Drive
Phoenix, AZ
North Mountain
Single Family
3 beds2 baths1,638 sq.ft.
Investment Properties for Sale
$2,800
MLS 5976879
918 W WINDSONG Drive
Phoenix, AZ
Ahwatukee Foothills
Single Family
4 beds3 baths3,000 sq.ft.
Phoenix, AZ Open Houses
Investment Properties for Sale
Open 2 PM to 6 PM
$240,000
MLS 3186000
3186 W Williams Drive
Phoenix, AZ 85027
Deer Valley
Single Family Residential
3 beds2 baths1,305 sq.ft.
CAP RATE
Trad. 2.49%Airbnb 3.55%
Investment Properties for Sale
Open 12 PM to 4 PM
$280,000
MLS 9152019
2150 W. Alameda #Bldg 37, 1105
Phoenix, AZ 85085
Deer Valley
Townhouse
4 beds4 baths1,850 sq.ft.
CAP RATE
Trad. 2.63%Airbnb 7.26%
Investment Properties for Sale
Open 11 AM to 2 PM
$395,000
MLS 5965153
5407 E VIRGINIA Avenue
Phoenix, AZ 85008
Camelback East
Single Family Residential
3 beds2 baths1,640 sq.ft.
CAP RATE
Trad. 2.04%Airbnb 3.57%
Investment Properties for Sale
Open 4 PM to 7 PM
$1,349,000
MLS 5944641
13015 N. 17th Place
Phoenix, AZ 85022
North Mountain
Single Family Residential
4 beds4 baths4,091 sq.ft.
CAP RATE
Trad. -0.98%Airbnb -1.13%
Best Phoenix Neighborhoods for Buying Investment Property
68%
Mashmeter
property price
$350,000
Median
cap rate
4.73%
Traditional
7.61%
Airbnb
rental income
$1,381
Traditional
$2,219
Airbnb
homes for sale
310
occupancy rate
69%
Airbnb
76%
Mashmeter
property price
$539,000
Median
cap rate
3.76%
Traditional
7.52%
Airbnb
rental income
$1,689
Traditional
$3,376
Airbnb
homes for sale
447
occupancy rate
54%
Airbnb
67%
Mashmeter
property price
$255,000
Median
cap rate
4.86%
Traditional
13.13%
Airbnb
rental income
$1,033
Traditional
$2,790
Airbnb
homes for sale
59
occupancy rate
68%
Airbnb
69%
Mashmeter
property price
$330,000
Median
cap rate
5.17%
Traditional
10.38%
Airbnb
rental income
$1,422
Traditional
$2,853
Airbnb
homes for sale
305
occupancy rate
49%
Airbnb
72%
Mashmeter
property price
$260,000
Median
cap rate
4.95%
Traditional
6.73%
Airbnb
rental income
$1,073
Traditional
$1,458
Airbnb
homes for sale
309
occupancy rate
58%
Airbnb
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