The best Arizona real estate markets include Phoenix, Scottsdale, Tucson, Tempe, and Prescott. These areas have all enjoyed steady population growth, rising median home prices, and a consistent demand for both short and long-term rentals.
The state's most populous city and the capital of Arizona, Phoenix, is home to nearly five million people and has a thriving economy that has seen rent and sales pricing increase year after year. The Phoenix real estate market has heated up significantly in the past few years: the median listing price in 2023 was $514,900, a 14.4% increase from 2022.
The rental market in the Phoenix metro area works well for both short-term and long-term rental properties. Many people visit to enjoy the Phoenix Zoo, Desert Botanical Garden, and nearby Camelback Mountain.
This city boasts high rents and draws in tourists from all over the world, making it one of the best investment markets in the United States for both long-term residential properties and short-term vacation rentals. The city's growing population is mostly young professionals seeking job opportunities in the burgeoning financial and tech sectors.
The average Scottsdale resident makes $32,000 more than the national average, meaning that long-term rental properties can be an incredibly lucrative opportunity. Thousands of visitors flock here each year to experience the McDowell Sonoran Preserve, the many golf courses, and world-class spas.
Cushioned between the two sections of Saguaro National Park, Tucson has high renter percentages and affordable real estate prices, making it a great location for investing in long-term rental property.
The job market here is excellent, experiencing a 3.2% increase in employment opportunities from 2021 to 2022, which ensures consistent rental income for investment properties. Tucson also has a strong tourist industry, with over seven million overnight stays every year. The San Xavier del Bac Mission, the Arizona-Sonora Desert Museum, and Old Tucson attract domestic visitors, allowing some potential for short-term rental property.
Home to Arizona State University and Tempe Town Lake, the Tempe market is one that investors should get in on while it's still affordable. At the moment, the median home price has dropped by 4.7% in the last year, which makes this the perfect time to buy rental property. Future job growth in Tempe is expected to be 49.9% — well above the national average of 33.5%.
Home ownership rates here have dropped by 8.2% in recent years and are not expected to significantly rise, meaning it’s an attractive location for long-term rentals, especially for single-family homes. In addition to college students seeking housing, there are plenty of vacation real estate investment opportunities due to the well-respected ASU Art Museum and the bustling Tempe Marketplace.
While smaller than other Arizona markets, Prescott is a college town with a relatively low median home value, making it an affordable and attractive city for savvy investors. This town in Northern Arizona is home to Embry-Riddle Aeronautical University, Yavapai College Prescott Campus, and Prescott College, making it a smart real estate investment for those looking to buy investment properties on a budget and rent to young professionals.
While its tourist industry is a bit smaller, Prescott boasts the booming Whiskey Row, a street filled with music venues, and several well-respected museums of pioneer history. It also offers access to Watson Lake with miles of hiking trails.
Headquartered in Austin, Texas, Visio Lending has over a decade of experience in real estate and finance. We’ve closed over $34 million in rental loans in Arizona over the past few years.
Visio's loans were designed with investors in mind, offering full 30-year terms and LTVs up to 80% on purchases and rate and term refinances, and LTVs up to 75% on cash-out refinances.
Our loan process is fast, simple, and dependable with no DTI calculations or personal financial statements.