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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 Sale1,647
Airbnb Properties471
Rental Properties5,325
Traditional Vacancy rate8.30%
Airbnb Occupancy Rate67.01%
Mashmeter67.51%
Median Price$367,725
Median Rent Price$1,840
Price/sqft$254
Median Days on Market78
Price to Rent Ratio25.6
Average Cap Rate
Airbnb4.67%
Traditional2.32%
Average Rental Income
Airbnb$2,940
Traditional$1,554
 
Median Household Income$43,960
Population1,626,078
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$1,415$1,801$2,166$3,539$4,823
Traditional$1,053$910$1,316$1,621$1,924
Phoenix, AZ - Homes for Sale - Newly Listed
$310,000
MLS
20237 N 14TH AVE PHOENIX, AZ 85027
Phoenix, AZ 85027
Deer Valley
Single Family Residential
3 beds2 baths1,820 sq.ft.
CAP RATE
Trad. 3.30%Airbnb 3.86%
$220,000
MLS 6221521
2808 W MINNEZONA Avenue
Phoenix, AZ 85017
Alhambra
Single Family Residential
2 beds1 baths899 sq.ft.
CAP RATE
Trad. 3.11%Airbnb 6.91%
$449,990
MLS 6214875
2413 E ALTA VISTA Road
Phoenix, AZ 85042
South Mountain
Single Family Residential
4 beds4 baths2,592 sq.ft.
CAP RATE
Trad. 2.02%Airbnb 1.79%
$609,900
MLS 6221070
2131 W RED RANGE Way
Phoenix, AZ 85085
North Gateway
Single Family Residential
4 beds3 baths3,385 sq.ft.
CAP RATE
Trad. 1.53%Airbnb 3.57%
Top Performing Phoenix Properties
$450,000
MLS 6218693
2933 E VERBENA Drive
Phoenix, AZ 85048
Ahwatukee Foothills
Single Family Residential
4 beds2 baths1,960 sq.ft.
CAP RATE
Trad. 3.00%Airbnb 8.00%
$549,000
MLS 6218942
4415 E Becker Lane
Phoenix, AZ 85028
Paradise Valley
Single Family Residential
3 beds3 baths2,192 sq.ft.
CAP RATE
Trad. 1.43%Airbnb 7.99%
$699,999
MLS 6207692
110 W WALTANN Lane
Phoenix, AZ 85023
North Mountain
Single Family Residential
4 beds3 baths2,421 sq.ft.
CAP RATE
Trad. 1.03%Airbnb 7.96%
$360,000
MLS 6141468
5739 N 10th Street
Phoenix, AZ 85014
Encanto
Single Family Residential
3 beds2 baths1,245 sq.ft.
CAP RATE
Trad. 4.32%Airbnb 7.95%
Recently Sold Homes in Phoenix, AZ
$660,000
MLS 6203147
3060 N GRAND Avenue
Phoenix, AZ 85017
New Village
Multi Family
0 beds0 baths0 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$407,000
MLS 6214332
2134 W HEATHERBRAE Drive
Phoenix, AZ 85015
Alhambra
Multi Family
0 beds0 baths0 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$0
MLS
4233 SOUTH 81ST LANE
Phoenix, AZ 85043
Estrella
Single Family Residential
5 beds4 baths2,486 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$649,000
MLS 6204987
7657 N 12TH Street
Phoenix, AZ 85020
Alhambra
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
$400,000
MLS 6145329
6854 N 36th Drive
Phoenix, AZ 85019
Alhambra
Multi Family
0 beds0 baths0 sq.ft.
CAP RATE
Trad. 3.02%Airbnb N/A
$329,000
MLS 6211725
2418 W Madison Street
Phoenix, AZ 85009
Encanto
Multi Family
0 beds0 baths0 sq.ft.
CAP RATE
Trad. 2.44%Airbnb N/A
$389,000
MLS 6142527
2123 W VISTA Avenue
Phoenix, AZ 85021
Alhambra
Multi Family
0 beds0 baths0 sq.ft.
CAP RATE
Trad. 2.44%Airbnb N/A
$348,983
MLS 6016562
802 E HAZEL Drive
Phoenix, AZ 85042
South Mountain
Multi Family
0 beds0 baths0 sq.ft.
CAP RATE
Trad. 2.41%Airbnb N/A
Homes Below Median Price in the Phoenix, AZ Real Estate Market
$450,000
MLS 6218693
2933 E VERBENA Drive
Phoenix, AZ 85048
Ahwatukee Foothills
Single Family Residential
4 beds2 baths1,960 sq.ft.
CAP RATE
Trad. 3.00%Airbnb 8.00%
$549,000
MLS 6218942
4415 E Becker Lane
Phoenix, AZ 85028
Paradise Valley
Single Family Residential
3 beds3 baths2,192 sq.ft.
CAP RATE
Trad. 1.43%Airbnb 7.99%
$699,999
MLS 6207692
110 W WALTANN Lane
Phoenix, AZ 85023
North Mountain
Single Family Residential
4 beds3 baths2,421 sq.ft.
CAP RATE
Trad. 1.03%Airbnb 7.96%
$360,000
MLS 6141468
5739 N 10th Street
Phoenix, AZ 85014
Encanto
Single Family Residential
3 beds2 baths1,245 sq.ft.
CAP RATE
Trad. 4.32%Airbnb 7.95%
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
$78 per night
Entire home/apt · 1 bed
Charming Coronado Guest House
1065
$74 per night
Entire home/apt · 1 bed
Coronado Private Casita
630
$114 per night
Entire home/apt · 1 bed
Midtown Guest House with Rooftop Deck
518
$66 per night
Phoenix, AZ Homes for Rent
$1,695
MLS 6220473
15410 N 31st Drive
Phoenix, AZ
North Mountain
Single Family
3 beds2 baths2,283 sq.ft.
$2,900
MLS 6220912
2640 N 15TH Street
Phoenix, AZ
Encanto
Single Family
4 beds2 baths1,485 sq.ft.
$3,500
MLS 6220269
5802 E BETTY ELYSE Lane
Phoenix, AZ
Paradise Valley
Single Family
4 beds2 baths2,243 sq.ft.
$3,200
MLS 6220364
2035 E NORTHWOOD Drive
Phoenix, AZ
Desert View
Single Family
4 beds3 baths1,911 sq.ft.
Phoenix, AZ Open Houses
Open 12 PM to 3 PM
$679,600
MLS 6219622
3408 E Squawbush Pl
Phoenix, AZ 85044
Ahwatukee Foothills
Single Family Residential
4 beds3 baths3,161 sq.ft.
CAP RATE
Trad. 1.42%Airbnb 4.73%
Best Phoenix Neighborhoods for Buying Investment Property
59%
Mashmeter
property price
$450,000
Median
cap rate
4.50%
Traditional
9.15%
Airbnb
rental income
$1,688
Traditional
$3,430
Airbnb
homes for sale
194
occupancy rate
71%
Airbnb
65%
Mashmeter
property price
$625,000
Median
cap rate
3.39%
Traditional
7.37%
Airbnb
rental income
$1,765
Traditional
$3,839
Airbnb
homes for sale
221
occupancy rate
63%
Airbnb
67%
Mashmeter
property price
$424,900
Median
cap rate
4.62%
Traditional
12.82%
Airbnb
rental income
$1,637
Traditional
$4,538
Airbnb
homes for sale
139
occupancy rate
61%
Airbnb
66%
Mashmeter
property price
$462,500
Median
cap rate
3.91%
Traditional
8.71%
Airbnb
rental income
$1,507
Traditional
$3,355
Airbnb
homes for sale
88
occupancy rate
73%
Airbnb
68%
Mashmeter
property price
$327,498
Median
cap rate
4.53%
Traditional
7.74%
Airbnb
rental income
$1,237
Traditional
$2,113
Airbnb
homes for sale
47
occupancy rate
63%
Airbnb