In this edition of The TurboTenant report, we will be focusing on the best places to buy an investment property in Arizona. Four towns made our list: Phoenix, Mesa, Glendale, and Tucson. We curated data from studies on the best places to buy an investment property, median sale prices, and proprietary TurboTenant data. The TurboTenant Data includes stats on the average number of leads a rental property received, as well as the average number of days on the market. These two points will help an investor determine the strength of the rental market, as well as estimating potential vacancy rates.
Arizona is hot – not only hot because of its desert climate, but also for the flourishing rental market. While this state has excellent scenery from the Grand Canyon, one of the seven wonders of the world, to Lake Havasu, it also has great urban environments such as Phoenix and Tucson. Not to mention it has more designated Native American land than any other state and is the youngest state in the continental U.S. People can’t get enough of the Arizona heat which is evident by the steady population growth and employment growth in all of our towns – all of them also have less than two weeks on the market.
We promise your property investing will be grand in The Grand Canyon State – let’s find out the top cities to buy a rental.
#4: Tucson
Tucson is known for its beauty in the Sonoran Desert, mountains, and fields of cacti. It has a thriving arts community with many multicultural elements in its galleries and museums. It’s also home to the University of Arizona, often ranking as one of the top universities in the West and giving property investors lots of tenants! Renters can enjoy an affordable rent of only $931 for a two bedroom while landlords can expect around 28 leads per property and only 13 days or less on the rental market. Tucson is the place to be.
- Population growth: 1.5%
- Employment growth: 1.9%
- Increase in home values: 3%
Median Sale Price: $225k
Average Rent: $931
Average Number of Leads per Property: 28
Number of days on the rental market: 13
#3: Phoenix
Phoenix is where “unmatched desert character meets big-city sophistication.” It is America’s fifth-most-populated city and has more land designated for parks and preserves than any other major city in the U.S. – not to mention it has great shopping, dining, and experiences for locals. Phoenix is a great place for everyone – especially property investors, who will get an average of 30 leads per property and only 12 days on the market. You should expect a great ROI on your properties with a 9.6% increase in home values. The Valley of the Sun is calling!
- Population growth: 4.0%
- Employment growth: 3.1%
- Increase in home values: 9.6%
Median Sale Price: $271k
Average Rent: $1226
Average Number of Leads per Property: 30
Number of days on the rental market: 12
#2: Glendale
Located only nine miles northwest of Downtown Phoenix, Glendale is an up and coming community great for families, young adults, and retired couples. You can catch an Arizona Cardinals game, check out Adobe Mountain Desert Park, or visit many historical ranches. While it’s known as Arizona’s Antique Capital, you will find many new developments as the population and employment growth is steadily increasing. Landlords can expect 37 leads per property and only nine days on the market – yes, please!
- Population growth: 1.9%
- Employment growth: 3.2%
- Increase in home values: 7.2%
Median Sale Price: $263k
Average Rent: $1128
Average Number of Leads per Property: 37
Number of days on the rental market: 9
#1: Mesa
Only 15 miles east of Phoenix, Mesa is the third largest city in Arizona. It is a hub for educational and business opportunities with great amenities perfect for families: Parks within easy walking distances, great golf courses, and the Chicago Cubs and Oakland A’s Spring Training facilities. Mesa is known for its great affordability with a median sale price of only $280k. Mesa is our #1 city to invest in with a total of 45 leads per property and only nine days on the rental market! Property investors will find the best tenants in no time.
- Population growth: 3.6%
- Employment growth: 3.2%
- Increase in home values: 8.3%
Median Sale Price: $280k
Average Rent: $1169
Average Number of Leads per Property: 45
Number of days on the rental market: 9
Once you’ve landed the perfect investment property in a good location, TurboTenant can help take your landlording into the digital world by streamlining the rental process with easy and free online rental applications as well as thorough tenant screening so you can find the best renter for your property.
About the TurboTenant Report
The TurboTenant Report analyzes data from active listings across all 50 states, as well as third party real estate, population and employment growth data. Our goal with the TurboReport is to empower seasoned and novice investors to make wise purchasing decisions when purchasing a rental investment property. For more information or custom data requests, please contact [email protected].
Methodology:
In order to determine the best cities to invest in each state, we curated data from a number of reputable sources as well as using TurboTenant proprietary data. Our main city selections were taken from a study that evaluated four main factors for each city: employment growth, population growth, increase in home values and rental yield. We combined that with TurboTenant data on the average rent price, the number of rental leads per property, as well as the average number of days the rental stays on the market.
We also included an honorable mention where applicable. They are pulled from this study on the best places to invest in every state. These were determined using Zillow’s Buyer-Seller Index and Zillow Home Value Forecast, and AreaVibes’ Livability Score. Other methods for determining honorable mentions include using TurboTenant proprietary data to determine which cities return the best rental investment R.O.I. using data points including days on market, the number of leads per property, and average rent price.
DISCLAIMER: TurboTenant, Inc does not provide legal advice. This material has been prepared for informational purposes only. All users are advised to check all applicable local, state and federal laws and consult legal counsel should questions arise.
Sources:
- TurboTenant Rental Data
- Fastest Growing States Population
- The Best and Worst Cities to Own Investment Property
- Real Estate data provided by Redfin, a national real estate brokerage.
