Section 01
City identity
- What draws Airbnb guests
- Phoenix is a magnet for those seeking warm winter retreats and year-round business opportunities, thanks to its desert landscapes and thriving economy. The city's proximity to natural attractions such as Camelback Mountain provides a compelling draw for both leisure and adventure tourists.
- Why this city, not the next one
- Phoenix often edges out other Southwest cities like Tucson for its comprehensive business infrastructure and upscale dining and golfing options. Its well-connected airports also make it a more convenient choice than some nearby desert towns.
- Primary tourism type
- Phoenix offers a mix of business and leisure tourism, with golf resorts and desert hiking trails as key leisure attractions.
- How tourism has shifted
- Tourism in Phoenix has grown steadily over the last five years, bolstered by its role as a conference centre and its appeal as a winter sun destination. Record-breaking visitation prior to the pandemic is rebounding, with 2023 already seeing significant recovery.
Section 02
Who visits — and what they want
There is a balanced mix of both domestic and international travellers, often skewing towards business professionals attending conferences and leisure tourists escaping harsh winters. Seniors and families also frequent the city, seeking both relaxation and adventure.
- Typical stay length
- Business travellers typically stay 2-3 nights, while leisure tourists often book 5-7 nights to fully explore the city and surrounding nature.
- Top source nationalities
- CanadaMexicoUnited KingdomGermany
- Most-valued amenities
- Air conditioningWi-FiWorkspaceFree parking
Section 03
What drives bookings
Highest-converting attractions
- Camelback Mountain
Draws hiking enthusiasts contributing to stable weekend occupancy.
- Desert Botanical Garden
Attracts nature lovers, increasing bookings during cooler months.
- Heard Museum
Art and history buffs bolster mid-week stays, helping to balance occupancy.
- Phoenix Convention Center
Drives weekday demand with conferences and trade shows, bolstering mid-week occupancy.
High-traffic neighborhoods
Annual events that move occupancy
- Phoenix Open· February
This event spikes occupancy and ADR, making it a lucrative period for landlords.
- Cactus League Spring Training· March
Strong occupancy due to sports tourism, but competition among rentals rises.
- Electric Desert Exhibit· November
Boosts occupancies as art lovers flock to the city.
- Sporting events, trade fairs, conferences
- The Phoenix Convention Center's calendar, including events like Comic Fest and NBA games, routinely lifts occupancy levels, as do the games of local sports teams like the Phoenix Suns and Arizona Diamondbacks.
Section 04
Month-by-month seasonality
January
mediumWinter travelers peak seeking warm weather, driving up occupancy.
February
highPhoenix Open Golf Tournament significantly boosts ADR and occupancy.
March
peakCactus League Spring Training attracts baseball fans, lifting all metrics.
April
highPleasant weather continues to drive bookings for leisure activities.
May
mediumEarly summer heat starts to deter some tourists, marginally affecting occupancy.
June
lowTemperatures rise, reducing leisure travel but business stays persist.
July
lowHigh temperatures cause a downturn in leisure guests. Expect reliance on business travel.
August
lowStill suffering from the heat with softened leisure demand.
September
mediumFall sports and conferences begin to aid occupancy recovery.
October
mediumCooler weather attracts hikers and festival-goers.
November
highCultural festivals begin, helping restore occupancy and pricing.
December
highHoliday travel increases as families visit the city.
- Best months for occupancy
- March
- Best months for pricing
- February
- Weakest months
- June to August
- Shoulder seasons
- April and October offer a balance of favorable weather and fewer tourists, leading to moderate pricing potential.
- Weather impact
- Summer heat can deter visitors, leading to lower occupancy and prices.
- School holiday impact
- Peak family travel occurs during school holidays, particularly around Easter and winter breaks, slightly extending stays.
Section 05
Short-term rental regulations
Phoenix has relatively lenient regulations for short-term rentals, but monitoring ongoing legislative discussions is important as changes could occur.
- Licensing & registration
- Hosts must obtain a Transaction Privilege Tax (TPT) license, which enables tax remittance for bookings.
- Primary residence rules
- No specific requirement for rentals to be primary residences, freeing up multiple property investments.
- Zoning / building rules
- Specific residential zoning laws can limit operations in some neighborhood associations, requiring due diligence before purchase.
- Tax obligations
- Arizona requires hosts to collect and remit Transaction Privilege Tax (TPT) from guests, currently managed by platforms like Airbnb, although independent filings may still be required.
- Compliance challenges
- Staying updated on tax policy changes and collecting TPT correctly can be cumbersome without professional assistance.
- Recent legal changes
- Recent discussions around further tax accountability for platforms could shift some administrative burden directly to hosts.
- Future regulatory risks
- Proposals at the state level could increase regulation, especially if local tourism sentiments tilt against STRs.
Section 06
Neighborhood breakdown
10 neighborhoods relevant to short-term rental in Phoenix. Each entry sketches the typical guest, property type, rates and 12–36 month outlook.
Downtown Phoenix
- Who stays
- Business travelers and urban explorers attracted to professional events and cultural sites.
- Best property type
- 1BHK serviced apartment
- Typical ADR
- $150 – $250/night
- Typical occupancy
- 75–85%
- Advantages
- Proximity to the Convention Center and major transit options. The urban renewal has increased its attractiveness for young professionals.
- Disadvantages
- Street noise and ongoing development can be a drawback for some guests.
- Investor appeal
- High turnover and premium event rates make it very profitable, despite market saturation.
- Guest appeal
- Access to dining, arts, music, and professional sports venues including Chase Field.
12–36 month outlook
Future light rail expansions could further improve connectivity and demand.
Scottsdale
- Who stays
- Luxury-seeking tourists and golfers drawn to upscale shopping and resorts.
- Best property type
- 3BR luxury home or villa
- Typical ADR
- $350 – $500/night
- Typical occupancy
- 80–90%
- Advantages
- Attracts a wealthier clientele willing to pay top dollar for expansive properties and golf access.
- Disadvantages
- High competition during peak seasons can lead rates to plummet for underwhelming listings.
- Investor appeal
- With consistent demand for upscale accommodation, investors see strong returns and property appreciation.
- Guest appeal
- High-end options from shops to golf courses, and proximity to hiking, keeping tourists engaged.
12–36 month outlook
The growth of its tech sector could diversify visitor demographics, particularly for corporates.
Tempe
- Who stays
- College students, parents, and millennials looking for affordability and nightlife.
- Best property type
- Studio or 1BHK apartment
- Typical ADR
- $120 – $200/night
- Typical occupancy
- 65–75%
- Advantages
- Home to Arizona State University, generating a steady flow of short visits and school-related tourism.
- Disadvantages
- Can suffer from noise and congestion, particularly during the academic year.
- Investor appeal
- Affordability in purchase pricing makes it enticing for mid-tier investors.
- Guest appeal
- Vibrant district with dynamic nightlife, sports facilities, and youthful energy.
12–36 month outlook
Potential expansion of ASU's programs and research initiatives could further fortify demand.
Paradise Valley
- Who stays
- Affluent guests in search of privacy and luxury amenities.
- Best property type
- Spacious villas or luxury homes
- Typical ADR
- $450 – $700/night
- Typical occupancy
- 70–80%
- Advantages
- Stunning views and high-end lifestyle offerings, including spas and golf courses.
- Disadvantages
- Limited guests seeking out this price point, narrowing target audience density.
- Investor appeal
- High-value properties maintain rental appeal and substantial appreciation potential.
- Guest appeal
- Seclusion combined with proximity to elite restaurants and outdoor activities.
12–36 month outlook
With more elite properties continuously going up, it is becoming a hub for luxury living.
Arcadia
- Who stays
- Families and couples interested in unique accommodation near Phoenix's local attractions.
- Best property type
- Boutique cottage or family home
- Typical ADR
- $180 – $300/night
- Typical occupancy
- 72–82%
- Advantages
- Family-friendly amenities and historic charm, along with lush landscapes.
- Disadvantages
- Properties can be older, requiring more maintenance and care in presentation.
- Investor appeal
- Supply is limited by zoning, keeping value high; thus, appreciation is projected.
- Guest appeal
- Combines suburban feel with access to key areas of the city, providing the best of both worlds.
12–36 month outlook
Investments in local attractions and community spaces continue to enrich its profile.
Camelback East
- Who stays
- Nature enthusiasts and business professionals looking for a convenient yet tranquil stay.
- Best property type
- 2BHK with a view
- Typical ADR
- $160 – $280/night
- Typical occupancy
- 68–78%
- Advantages
- Easy access to hiking trails and nature, appealing to guests desiring healthy lifestyles.
- Disadvantages
- Summer heat can make outdoor attractions less appealing, impacting short-stays from May to August.
- Investor appeal
- Close proximity to resorts ensures steady demand and chance for strong pricing during cool months.
- Guest appeal
- Balanced stay offering urban access and quiet residencies, ideal for mid-week travel.
12–36 month outlook
Infrastructural plans for additional nature trails may make it more attractive for niche tourism.
Chandler
- Who stays
- Tech industry professionals and families due to emerging tech hub status and family facilities.
- Best property type
- Family-sized home or tech-friendly apartment
- Typical ADR
- $130 – $210/night
- Typical occupancy
- 65–75%
- Advantages
- Near several tech giant offices, offering potential for corporate bookings.
- Disadvantages
- Commute into central Phoenix can be time-consuming, impacting preference for those without cars.
- Investor appeal
- Affordable housing costs relative to the wider metro area make this an appealing long-term investment.
- Guest appeal
- Safe communities attract young families and tech workers to this well-developed suburb.
12–36 month outlook
With Silicon Desert booming, more tech companies setting up could lead additional demand for rentals.
Mesa
- Who stays
- Budget-conscious travelers and extended families enjoying Arizona’s attractions economically.
- Best property type
- Budget apartments or extended-stay homes
- Typical ADR
- $110 – $180/night
- Typical occupancy
- 63–73%
- Advantages
- Landscapes and affordability make it appealing for longer stays, particularly for families.
- Disadvantages
- Lower diversity of amenities compared to upscale areas can deter short-term visits.
- Investor appeal
- Lower entry prices but with potential to capitalize on evolving local attractions.
- Guest appeal
- Cost-effective for larger groups and longer vacations who will explore Arizona's breadth.
12–36 month outlook
Development in downtown and light rail expansion could create new interest.
Gilbert
- Who stays
- Young professionals and families, drawn to a fast-growing town with modern amenities.
- Best property type
- Modern family homes
- Typical ADR
- $140 – $210/night
- Typical occupancy
- 66–76%
- Advantages
- Strong local community feel with daily conveniences and access to nearby leisure.
- Disadvantages
- Limited nightlife could affect draw for certain traveler demographics.
- Investor appeal
- Housing market growth presents significant long-term capital gain possibilities.
- Guest appeal
- Proximity to fun parks, nature, and entertainment perfect for family-oriented stays.
12–36 month outlook
Continued expansion of entertainment venues supports future tourism growth.
Glendale
- Who stays
- Sports fans for seasonal games and concerts, and families for entertainment complexes.
- Best property type
- Apartments with stadium views
- Typical ADR
- $130 – $220/night
- Typical occupancy
- 70–80%
- Advantages
- Hosts State Farm Stadium, leading to bursts of demand during NFL and other live events.
- Disadvantages
- Outside of sporting event periods, demand can plummet, requiring dynamic pricing strategies.
- Investor appeal
- Besides event-driven income, growing suburbs signal longer-term rental appeal.
- Guest appeal
- Proximity to the stadium offers memorable experiences for attendees, fueling repeat business.
12–36 month outlook
Continued investment around the stadium and entertainment district could increase off-season allure.
Section 07
Market performance
City-wide ADR
$185
Occupancy
70–80%
Typical annual revenue
$32,000 – $45,000
- Revenue across neighborhoods
- Scottsdale often draws the highest annual revenue due to luxury listings, while neighborhoods like Mesa offer solid returns on budget units.
- Revenue across property types
- Luxury villas and 3BHK homes in Scottsdale lead on annual yield, closely followed by centrally-located 1BHKs during peak months.
- Most profitable categories
- Rovostays data suggests that centrally located serviced apartments hold strong value, especially those near business districts featuring workspace amenities.
- Oversupplied categories
- High-end market in Scottsdale nearing saturation in peak seasons. Budget segments less affected.
Section 08
Competition
- Overall intensity
- Phoenix’s market is highly competitive during key event periods, but offers easier access for hosts in mid and lower-tier segments.
- Active listings
- Approximately 5,000
- Luxury segment
- Scottsdale strongly captures demand for luxury lodging with competitive rates during the various golf and cultural events.
- Budget segment
- Mesa and Chandler cater to the lower end of the market, providing consistent demand outside peak tourist times.
Underserved niches
- Pet-friendly accommodations
- Eco-conscious lodging
- Tech-enabled smart homes
Section 09
Local operating costs
- Cleaning
- Cleaning costs are typically $70-$90 per turnaround for a 1BHK; larger properties can rise to $150.
- Laundry
- Laundry services range from $25-40 per service, often done in house for larger units to cut costs.
- Utilities
- Expect to budget $150-$250 monthly for utilities depending on property size and occupancy.
- Internet
- High-speed internet ranges from $40-$70 per month, important for maintaining a business-friendly facade.
- Property management
- Depending on service level, expect 15-25% of rental income for full-management services.
- Maintenance
- Seasonal checkups and minor repairs tend to average $120 per month, escalated by HVAC costs in peak summer.
- Insurance
- Short-term rental insurance varies from $700-$1,500 annually, influenced by property value and specific coverage.
Section 10
What local guests expect
- Parking
- Guests often require at least one free parking spot, with proximity to the unit being key for satisfaction.
- Air conditioning
- AC is a non-negotiable requirement during summer months in Phoenix.
- Heating
- Less critical due to mild winters, but should be operational.
- Public transport access
- Varies significantly; better transit in central areas but outer neighborhoods still require vehicle access.
- Workspace
- Strong Wi-Fi and a dedicated workspace are expected, particularly by business travelers.
- Balcony
- Desired for morning and evening use during mild weather periods, valuable for urban captives.
- Pool
- High appeal during summer; a competitive edge but can be costly to maintain year-round.
- Family amenities
- Cribs and high chairs frequently requested by families, aiding family-friendliness especially in districts like Arcadia.
- Luxury expectations
- Modern amenities and spacious designs are sought after, particularly in Scottsdale.
Section 11
Transport & connectivity
- Airport impact
- Phoenix Sky Harbor International Airport, 6.5 kilometers southeast of downtown, makes certain central urban neighborhoods highly desirable for short-term rentals accessible to travelers.
- Rail
- Light rail covers central areas up to Mesa, but broader coverage is limited.
- Public transit quality
- Moderate, with most reliable and frequent service in downtown Phoenix and Tempe, yet spotty in suburbs.
- Walkability
- Downtown Phoenix and Scottsdale provide the most walkable areas, attracting guests without cars.
- Car dependency
- Cars are essential for suburban stays, impacting some traveler's choice to book outside urban cores.
- Future infrastructure
- The planned Tempe Streetcar and other expansions could further elevate some areas, improving accessibility.
Section 12
Investment angle
- Best neighborhoods for investors
- Downtown PhoenixScottsdaleChandler
- Fastest-growing
- GilbertChandler
- Luxury opportunities
- Strong opportunities exist in Scottsdale and Paradise Valley for luxury investors focusing on executives and long-stay holidaying families.
- Budget opportunities
- Properties in Chandler and Mesa offer affordability with prospects of steady cash flow amid local development increases.
- Key risks
- Seasonal downturns in summer require strategic pricing, and potential regulatory updates could make compliance more cumbersome.
Section 13
Local risks
- Noise & community
- Potential community pushback in some neighborhoods against excessive tourist traffic, especially if properties do not self-regulate noise.
- Tourist taxes
- Tourist taxes are currently managed by booking platforms like Airbnb, but direct remittances may become a concern with regulatory changes.
- Housing shortage debate
- AN ongoing debate about the impact of STRs on local housing shortages; regulation may tighten if market pressures rise further.
- Regulatory uncertainty
- While Phoenix isn't heavily regulated now, state and city policies could evolve rapidly given national trends, impacting STR operations.
- Crime considerations
- Rental properties in urban areas must account for heightened security-related expenses compared to suburban locales.
- Environmental risks
- Severe summer heatwaves can impede operations and deter guest bookings, requiring infrastructure for cooling.
- Seasonality risks
- The strong seasonality tied to Phoenix’s weather means hosts must adeptly manage price and occupancy expectations.
Section 14
Future outlook
- Tourism forecast
- Expect sustained growth with the return of international travelers and a continued tech sector boom fostering increased business visits.
Infrastructure projects in the pipeline
- Tempe Streetcar· ETA 2024
Expected to enhance accessibility and desirability in Tempe, supporting local STR demand.
- Phoenix Sky Harbor Terminal Modernization· ETA 2025
Increased traffic capacity may boost tourism numbers further, especially international.
- Major developments
- Tech industry growth in Chandler and new entertainment facilities around Glendale indicate promising tourism diversification.
- Upcoming regulations
- Potential tax reforms may mandate more detailed reporting and remittance of occupancy-related taxes by hosts directly.
- Economic factors
- Phoenix's diversified economy provides stability to the STR market, though inflation could push up operational costs.
Section 15
Phoenix as a mixed destination
Winter Sun Escapes
Phoenix is a prime destination for travelers seeking a winter sun escape. With temperatures that are more than comfortable during the late fall to early spring months, snowbirds flock from colder climates including Canada and the northern United States. Scottsdale's resplendent golf courses, combined with luxury spa and resort offerings, position the area as a focal point for a rejuvenating experience. As a host, emphasizing properties with outdoor spaces, such as gardens or balconies, can be particularly lucrative, as guests seek to soak up the sun and enjoy Arizona's unique landscapes. Additionally, targeting pet-friendly listings could help capture a segment of travelers who wish to bring their entire family along, including furry members. The income potential for investment properties is often highest during these months, thus strategic investments and marketing starts well before the fall winds dissipate.
Business and Convention Travel
Phoenix attracts a robust business crowd year-round. The Phoenix Convention Center draws in large conferences and trade shows, resulting in a consistent demand for quality short-term rentals, particularly mid-week when leisure travellers might not suffice. Key neighborhoods such as Downtown Phoenix and Tempe bear premium potential for those looking to market towards corporate clients and convention-goers. Modern or recently updated 1BHK apartments offering workspace and tech amenities will appeal to these visitors. Emphasizing strong Wi-Fi and seamless check-ins will be essential to cater to the business-focused guest. Hosted properties that streamline these operational facets stand to gain significantly from repeat contracts with organizations sending multiple employees to the region.
Adventure and Eco-tourism
While business and leisure serve as cornerstones, expanding opportunities exist in adventure tourism. Camelback Mountain, Red Rock hiking trails, and the Desert Botanical Garden draw outdoor enthusiasts and nature aficionados alike. For properties near these locales, emphasizing eco-friendly amenities and proximity to trailheads can attract a distinct guest demographic focused on sustainable travel. Incorporating solar panels, water-efficient systems, and eco-cottages can further boost appeal and align with the values of a growing ecological segment. As adventure tourism steadily gains traction, properties in emerging and strategically positioned areas could see additional demand peaks, especially around niches such as biking tours or organized hiking excursions. Hosts aiming towards long-term success in this category should explore partnerships with local eco-tour operators to create unique packages for their guests.
Section 16
Phoenix-specific insights
The questions a local consultant would answer. Everything below is city-specific — none of it would apply to a neighbouring market.
What impact does Scottsdale have on Phoenix's luxury rental market?
Scottsdale greatly influences Phoenix's luxury market by drawing high-end tourists, driving competitive ADR and occupancy rates, especially in peak tourism seasons linked with events like golf tournaments.
How does the summer heat affect short-term rental demand in Phoenix?
The intense summer heat in Phoenix significantly lowers leisure travel, pushing demand down. This is when rates are typically reduced, and hosts rely predominantly on business travelers.
Which neighborhoods benefit most from Phoenix Sky Harbor International Airport's proximity?
Downtown Phoenix and Tempe benefit greatly due to their easy and quick access to the airport, thus appealing to business travelers and short-stay tourists.
What are the seasonal risks for Phoenix hosts?
Seasonal risks include drastically lowered occupancy in the hot summer months (June to August), necessitating strategic pricing and potential reliance on business travelers or long-term bookings.
Is Airbnb permitted in Phoenix historic districts?
Airbnb is allowed; however, hosts must adhere to community association regulations that may impose additional direct family or resident-related restrictions.
How does Cactus League Spring Training affect booking patterns?
Cactus League Spring Training from February to March skyrocket occupancy and ADR, making it one of the most lucrative periods for Phoenix hosts catering to sports fans.
Why are properties in Chandler a good investment?
Chandler is emerging as a tech hub, offering a balance of affordability and demand for corporate bookings, fostering both appreciation and rental yield growth prospects.
What types of properties are underserved in Phoenix's STR market?
Pet-friendly accommodations and eco-conscious lodging options remain underserved, presenting growth opportunities for new hosts.
What are primary motives for international tourists visiting Phoenix?
International tourists are mainly drawn by golf resorts and the luxurious desert experience which Scottsdale and surrounding areas magnify.
How does light rail expansion impact STR locations?
Light rail expansions improve connectivity and desirability for downtown and central urban locations, potentially raising occupancy levels in surrounding stops and neighborhoods involved.
What's the typical cleaning cost for a Phoenix Airbnb host?
Typical cleaning costs range from $70-$90 per turnaround for a one-bedroom unit; larger homes can surpass $150, given the size and service level.
Why is Downtown Phoenix desirable for investors?
Downtown Phoenix commands high occupancy due in part to the convention center and professional venues, ensuring reliable demand from business travel.
What attracts families to the Arcadia neighborhood?
Arcadia attracts families due to its scenic setting, historic charm, green spaces, and family-oriented amenities, combined with proximity to key attractions and quality schools.
How do Phoenix events like the Electric Desert Exhibit affect local STR?
Events like the Electric Desert Exhibit elevate occupancy as they attract niche tourists, allowing hosts to boost prices and attract specialty or art-focused tourists.
What amenities are non-negotiable for summer bookings in Phoenix?
Air conditioning is absolutely mandatory in summer months due to high temperatures, and failure to provide it can vastly reduce booking interest.
Why is Gilbert a fast-growing area for investment?
Gilbert is rapidly growing due to new residential developments and a burgeoning community outlook, offering modern amenities and proximity to nature that appeal to young families.
Are zoning laws affecting Airbnb listings in Tempe?
Yes, homeowners in specific residential zones must comply with detailed zoning laws which can affect rentals tied to Arizona State University's geographic influence.
What ongoing developments could influence the Scottsdale rental market?
Ongoing developments in tech and recreational amenities in Scottsdale are projected to bolster its appeal for specific demographics, enhancing luxury STR opportunities.
Why is having a pool advantageous for Phoenix Airbnb properties?
A pool significantly attracts guests during Arizona's warmer periods offering guests a comfortable-setting and fun element, which translates to higher bookings and satisfaction.
Are there any tax changes hosts should watch for in Phoenix?
Legislation is considering more stringent tax documentation requirements for STR; hosts should stay informed to ensure compliance and avoid penalties.
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