(Gross Yields from 9.2%, $146 Average Daily Rate)
Quick Facts
Population – City of Phoenix – 1,608,139 (2020), Maricopa County – 4,420,568 according to US Census Bureau
- MacroTrends states that Maricopa County is currently growing at a rate of 1.48% annually since 2021. As a benchmark, FreddieMac states that US cities grow at an average of 0.3%.
- Famous for its sunny weather and impressive beaches
Cost of Living: Payscale ranks the cost of living in Phoenix to be 5% lower than the national average. Phoenix also has 5% lower housing expenses than the national average.
Active Rentals
There are 13721 active rentals in Maricopa County. Almost 53% of all listings are 1 and 2 bedrooms.
Larger homes catering to bigger parties and families are potentially undersupplied. There are only 539 active studio homes.
Average Daily Rate (Nightly Price)
The Average Daily Rate for rentals in Maricopa County is $142 dollars.
Throughout the year, the rate fluctuates by $58 from that average with the highest Average Daily in January ($200) and the lowest in June ($126).
Occupancy Rate
Occupancy Rates in Maricopa County, Arizona are the highest in the summer. The Occupancy Rate at an annual level is 58%.
The lowest occupancy rate was in July (44%) and the highest was in February (80%). Drop-in occupancy rates in January and December of 2021 can be partially explained by a surge in COVID cases.
High-Performance Properties
Chalet’s research shows that 4 bedroom homes have the highest percentage of homes in high yield territory (12.07%) therefore could be a good strategy for this market. Studios do not have enough samples to be considered (no active listings).
Chalet considers properties with a gross yield greater than 15% as high yield properties. Gross yield equals Gross Income/Purchase Price
Demand
The majority of the Maricopa County short-term rental guests are domestic guests from the United States, though February is when the presence of international guests is most noticeable.
International guests in February barely crossed the 5% threshold of total guests.
The majority of Maricopa County guests come from U.S. cities located within driving distance. Almost 25% of all guests in Maricopa County are from Maricopa County. We expect drive-to locations/cities to continue to do well in the post-covid world.
Other Facts
Maricopa County has an effective property tax rate of 0.610%. That’s slightly lower than the 1.07% national average. Source: SmartAsset.
According to Zillow, homes in Phoenix appreciated 29.5% year-over-year (YoY) and the median home price for active listings was $404,405 (as of March 2022).
Homes in Maricopa County average just 28 days on the market according to Redfin.
The BLS reported that the unemployment rate in Maricopa County fell to 3.1% in February of 2022, which is lower than the national average of 3.6%.
Short-Term Rental Regulation
See Chalet’s detailed analysis of short-term rental regulation in Maricopa County.
