How is the Rental Market in Arizona?
According to WalletHub 8 Phoenix-area cities hit top 50 healthiest US housing markets. The website had 14 criteria to determine rankings. Those criteria included pricing, days on market, affordability, and other factors.
Texas topped the healthiest markets list with the number 1 positions for large, midsize, and small markets. Those cities were Austin, Plano, and Frisco. Overall Arizona had a good showing on the list. Seattle and Denver were #2 and #3 for large cities.
Here are the Arizona cities that ranked among the healthiest real estate markets
11 Midsize - Gilbert
22 Midsize - Chandler
28 Midsize - Tempe
35 Midsize - Peoria
36 Midsize - Scottsdale
40 Large - Mesa
46 Large - Phoenix
49 Large - Tucson
55 Midsize - Glendale
88 Small - Surprise
123 Small - Yuma
Overall Arizona rental market has seen an increase in rents since January 2015 and inventory is low. This has increased demand all throughout the Phoenix area including Tucson. Particularly areas of strong demand where school districts are ranked high among the national average.
With the surge in rental prices, investors are finding tenants quicker that pay a premium. Average annual return on investment has stuck around 9% but we have seen better tenants and have been able to minimize investment risks. It is a great time to buy and hold investment properties in Arizona.
Not every home in the valley is a good investment. Look for desirable areas that have good school districts, low crime, shopping close, and good neighborhood zoning. These factors can help attract the right tenant for your home.
RentVest Property Management helps property owners with customer-centric property management services in Atlanta, Las Vegas, Dallas, Phoenix, Tucson, Reno, and Hawaii. Learn more about RentVest’s full-service management benefits.