While other real estate investors are searching for opportunities in the Scottsdale or Phoenix housing market, you’ve learned of another great investment location in Arizona – the Tempe real estate market. There are plenty of reasons why more and more investors are hoping to get their hands on Tempe AZ real estate:
- Tempe has one of the 10 largest populations in Arizona. As part of the Phoenix metropolitan area, the Tempe housing market is experiencing a high population growth rate.
- The renter population is relatively high in the city of Tempe, with over 62.1% of the population living in a Tempe rental property vs owning a home (data taken from NeighborhoodScout). This essentially means landlords enjoy a very high demand for their long-term rental properties.
- Tempe’s economy continues to experience growth and the job market has grown substantially over the past year (by 3.3% vs 1.6% on the national level).
- The Tempe real estate market benefits from the thriving tourism industry. Around 3.7 million people visit the city every year and crowd hotspots like the different national parks, zoos, as well as live events and festivals.
- Because tourism is such a large part of the local economy, officials have allowed Airbnb Tempe rental properties to run legally, even if they are classified as non-owner occupied properties.
- A Tempe real estate investment generates a good return on investment when rented out, according to Mashvisor’s traditional and Airbnb data:
- Median Property Price: $391,682
- Price per Square Foot: $228
- Price to Rent Ratio: 18
- Traditional Rental Income: $1,857
- Traditional Cash on Cash Return: 1.9%
- Average Airbnb Daily Rate: $152
- Airbnb Rental Income: $2,749
- Airbnb Cash on Cash Return: 3.3%
- Airbnb Occupancy Rate: 55%
So you may know where to invest in the Arizona housing market, but now you’re wondering where to invest in real estate in Tempe. Mashvisor has already conducted the neighborhood analysis for you and found Tempe neighborhoods that will provide high cash on cash return. Here are the best neighborhoods in Tempe according to our traditional and Airbnb analytics.
The Best Neighborhoods in the Tempe Real Estate Market
We have divided the data by property type:
- Airbnb Rental Properties
- Long-Term Rental Properties (which mostly represents single-family homes for sale in Tempe)
- Condos
- Townhouses
- Multi-Family Properties
That way, you will know exactly where to invest in Tempe based on your preferred rental property type.
The Best Neighborhoods in Tempe for Airbnb for Sale
1. Duskfire
- Median Property Price: $514,300
- Price per Square Foot: $177
- Average Airbnb Daily Rate: $168
- Airbnb Rental Income: $5,265
- Airbnb Cash on Cash Return: 6.7%
- Airbnb Occupancy Rate: 59%
2. Evergreen
- Median Property Price: $319,078
- Price per Square Foot: $199
- Average Airbnb Daily Rate: $155
- Airbnb Rental Income: $3,460
- Airbnb Cash on Cash Return: 6.1%
- Airbnb Occupancy Rate: 63%
3. Bell De Mar Crossing
- Median Property Price: $279,225
- Price per Square Foot: $191
- Average Airbnb Daily Rate: $179
- Airbnb Rental Income: $2,827
- Airbnb Cash on Cash Return: 5.0%
- Airbnb Occupancy Rate: 60%
4. McClintock
- Median Property Price: $375,898
- Price per Square Foot: $226
- Average Airbnb Daily Rate: $166
- Airbnb Rental Income: $3,278
- Airbnb Cash on Cash Return: 4.9%
- Airbnb Occupancy Rate: 61%
5. Optimist Park NE
- Median Property Price: $331,380
- Price per Square Foot: $208
- Average Airbnb Daily Rate: $185
- Airbnb Rental Income: $3,160
- Airbnb Cash on Cash Return: 4.8%
- Airbnb Occupancy Rate: 56%
Find a profitable Airbnb for sale in Tempe now.
The Best Neighborhoods in Tempe for Long-Term Rental Properties for Sale
1. Duskfire
- Median Property Price: $514,300
- Price per Square Foot: $177
- Price to Rent Ratio: 10
- Traditional Rental Income: $4,208
- Traditional Cash on Cash Return: 5.4%
2. McClintock
- Median Property Price: $375,898
- Price per Square Foot: $226
- Price to Rent Ratio: 13
- Traditional Rental Income: $2,431
- Traditional Cash on Cash Return: 3.6%
3. Clark Park
- Median Property Price: $400,300
- Price per Square Foot: $244
- Price to Rent Ratio: 14
- Traditional Rental Income: $2,366
- Traditional Cash on Cash Return: 3.1%
4. McClintock Manor
- Median Property Price: $418,243
- Price per Square Foot: $181
- Price to Rent Ratio: 15
- Traditional Rental Income: $2,307
- Traditional Cash on Cash Return: 2.8%
5. Cyprus Southwest
- Median Property Price: $405,329
- Price per Square Foot: $205
- Price to Rent Ratio: 16
- Traditional Rental Income: $2,164
- Traditional Cash on Cash Return: 2.6%
Find a profitable traditional rental property for sale in Tempe now.
The Best Neighborhoods in Tempe for Condos for Sale
Find the best condos for sale in the Tempe real estate in these neighborhoods.
1. Kiwanis Park
- Median Property Price: $274,000
- Price per Square Foot: $190
- Price to Rent Ratio: 13
- Traditional Rental Income: $1,774
- Traditional Cash on Cash Return: 2.2%
2. Evergreen
- Median Property Price: $192,000
- Price per Square Foot: $193
- Price to Rent Ratio: 10
- Traditional Rental Income: $1,673
- Traditional Cash on Cash Return: 2.1%
3. Escalante
- Median Property Price: $145,000
- Price per Square Foot: $186
- Price to Rent Ratio: 8
- Traditional Rental Income: $1,527
- Traditional Cash on Cash Return: 2.1%
4. Hughes Acres
- Median Property Price: $129,900
- Price per Square Foot: $211
- Price to Rent Ratio: 7
- Traditional Rental Income: $1,640
- Traditional Cash on Cash Return: 2.1%
5. Optimist Park SW
- Median Property Price: $174,900
- Price per Square Foot: $157
- Price to Rent Ratio: 8
- Traditional Rental Income: $1,735
- Traditional Cash on Cash Return: 1.9%
Find a profitable condo for sale in Tempe now.
The Best Neighborhoods in Tempe for Townhouses for Sale
1. Sandahl
- Median Property Price: $350,000
- Price per Square Foot: $215
- Price to Rent Ratio: 12
- Traditional Rental Income: $2,375
- Traditional Cash on Cash Return: 2.7%
2. NTNA – Indian Bend
- Median Property Price: $279,000
- Price per Square Foot: $235
- Price to Rent Ratio: 12
- Traditional Rental Income: $1,893
- Traditional Cash on Cash Return: 2.3%
3. Optimist Park NE
- Median Property Price: $245,950
- Price per Square Foot: $161
- Price to Rent Ratio: 11
- Traditional Rental Income: $1,801
- Traditional Cash on Cash Return: 2.2%
4. Escalante
- Median Property Price: $248,798
- Price per Square Foot: $221
- Price to Rent Ratio: 14
- Traditional Rental Income: $1,527
- Traditional Cash on Cash Return: 2.1%
5. Hughes Acres
- Median Property Price: $324,900
- Price per Square Foot: $230
- Price to Rent Ratio: 17
- Traditional Rental Income: $1,640
- Traditional Cash on Cash Return: 2.1%
Find a profitable townhouse for sale in the Tempe real estate market.
The Best Neighborhoods in Tempe for Multi-Family Homes for Sale
1. Cyprus Southwest
- Median Property Price: $459,900
- Price to Rent Ratio: 18
- Traditional Rental Income: $2,164
- Traditional Cash on Cash Return: 2.6%
2. Alegre Community
- Median Property Price: $560,950
- Price to Rent Ratio: 35
- Traditional Rental Income: $1,333
- Traditional Cash on Cash Return: 1.5%
3. Maple-Ash
- Median Property Price: $699,900
- Price to Rent Ratio: 35
- Traditional Rental Income: $1,667
- Traditional Cash on Cash Return: 1.1%
Find a profitable multi-family home for sale in Tempe now.
Related: How to Find Multi-Family Property for Sale
Want to conduct your own neighborhood analysis of any US housing market? Then sign up for Mashvisor and take advantage of our Real Estate Heatmap. This real estate investment software will allow you to analyze neighborhoods using metrics like listing price, traditional and Airbnb rental income, traditional and Airbnb cash on cash return, and Airbnb occupancy rate.
A Few Things to Consider Before Investing in Tempe Real Estate
It’s true that the Tempe real estate market could be one of the best places to buy rental property this year. But there are a few things you need to keep in mind before buying an investment property in the city:
The Tempe Real Estate Market Is Currently a Hot Seller’s Market
Zillow reports that Tempe is a red-hot seller’s market as of the time of this writing. Redfin gives the Tempe housing market a Compete Score of 85 which means it is a very competitive market. The real estate brokerage reports that Tempe homes for sale typically receive multiple offers. However, many sell for 1% below asking price. As the median property price is not too high, this means you may not have to pay an arm and a leg to buy property in Tempe just because it is a seller’s market. Although, you may have to be patient and work with a top real estate agent who can help you get a great deal.
Find a talented Tempe real estate agent now.
Property Values in Tempe Will See a Small Drop Over the Next Year
From now through March 2021, Zillow reports that a Tempe investment property’s value will drop by 0.1%. This does come after properties in the real estate market experienced a whopping real estate appreciation of 8.5% over the past year and at a time when most markets will see a drop in home prices and values due to COVID-19.
What does this mean for those who hope to become a Tempe real estate investor? It’s best to implement a buy and hold real estate investment strategy along with a rental property investment strategy. This means:
- Buy a Tempe investment property
- Rent it out for positive cash flow
- Hold onto it for the next few years
And keep in mind that the expected 0.1% drop is pretty low. Historically, Tempe real estate has appreciated. Since Q1 2000, property value has gone up by a total of 124%. So it’s likely that it will continue to increase in the future, despite this small drop in the near future which is likely coming from the coronavirus as opposed to market conditions/foundations.
Ready to Start Your Search for Property in the Tempe Real Estate Market?
Don’t embark on your Tempe real estate investing journey without Mashvisor. Mashvisor’s real estate investment tools have already helped so many US investors find the best properties for sale and it can help you find a high return Tempe income property today.
Start your 7-day free trial with Mashvisor now and get access to:
- A real estate investment search app
- A real estate heatmap for neighborhood analysis
- A rental property finder
- An investment property calculator
- Homeowner data
- A marketplace for off-market properties
Related: How to Find Homeowner Data Using Mashvisor