CalculateRealEstateROI

AZ • Market Analysis

Phoenix Real Estate Investment Analysis

Phoenix has been one of the fastest-appreciating markets of the past decade, driven by semiconductor investment, in-migration, and a young workforce.

Median Home Price
$445,000
Median Rent
$2,150
per month
Avg Cap Rate
5.60%
5-Yr Appreciation
71%
Rental Yield
5.80%
Population Growth
1.40%
Job Growth
2.50%
Vacancy Rate
7.30%

Investor pros

  • TSMC and chip-sector investment
  • Low regulation
  • Strong rental demand

Investor cons

  • Water-supply concerns long-term
  • Cooling rents after 2022 peak
  • Summer cooling costs hurt NOI

Commentary

Phoenix's near-term rent growth has flattened, but the long-term thesis remains intact. Underwrite to 2024 rents, not 2022 peaks.

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