Tempe is an inner suburb located between the core city of Phoenix and the rest of the East Valley. Due to this as well as being the home of the main campus of Arizona State University, Tempe has a fairly dense, urbanized development pattern in the northern part of the city especially in relation to the Valley Metro Line. Going south, development becomes less dense, consisting of single-family homes, strip malls and lower-density office parks.
The Tempe, AZ real estate market presents a compelling opportunity for investors seeking to make strategic property investments. The city's prime location surrounded by Phoenix, Guadalupe, Scottsdale, Chandler, and Mesa, coupled with its status as a popular tourist destination, contributes to a thriving real estate market that attracts both homeowners and investors alike.
Tempe's vibrant tourism industry, boasting national parks, zoos, events, and festivals that attract around 3 million visitors annually, has a direct impact on the local economy and property prices. The city's housing inventory has shown a decrease over time, reflecting heightened interest in real estate. Median listing prices have surged from around $330,000 before 2018 to nearly $420,000. The city's growth trajectory, historical housing permits, and fluctuations align with the influence of tourism.
Rental rates for different property types are buoyed by robust demand from both tourists and Arizona State University students. This demand has driven rental rates for distinct property types nearly double the fair market rents. The city's demographics reveal a median household income of $66,297 and education rates that exceed both the metro and Arizona averages. Tempe's focus on sustainability and eco-conscious initiatives, along with its diverse housing options, contribute to its allure and investor potential.
PURE Property Management understands the unique opportunities and challenges that come with rental property investments in Tempe. Our expert property management Tempe AZ team can help you navigate the local market, find quality residents, and maximize your return on investment. Whether you're a seasoned investor or exploring rental property for the first time, trust PURE Property Management to be your partner in success.