In-Depth Analysis of Tempe's Short-Term Rental Market

Future Outlook | Tempe's short-term rental market looks promising

With ASU continuing to grow and attract more international and national students and Tempe's ongoing development as a cultural and tech hub, the demand for short-term rentals will likely remain strong. 

Location and Overview

Tempe, Arizona, is a vibrant city located in the heart of the Phoenix Metropolitan Area, known for its youthful energy, primarily due to being home to Arizona State University (ASU). 


This demographic significantly influences the short-term rental market, providing a constant influx of students, faculty, visitors, and events that drive demand.

Short Term Rental Performance

Tempe has consistently outperformed Scottsdale in total income over the five years, suggesting a possibly more resilient or lucrative market in Tempe for short-term rentals.

Rental Income Trends

Tempe has consistently performed in the short-term rental market over the past five years. Suggesting a stable market, which might be attributed to Tempe's diverse economic base and its appeal to a broad range of renters, not just tourists but also academics, professionals, and families attending university events.

Market Dynamics

Demand Drivers

The primary demand driver in Tempe's short-term rental market is undoubtedly ASU, with its large student population and a continuous stream of events, conferences, and graduations. Additionally, Tempe hosts various festivals, sports events, and cultural activities, which draw visitors year-round. The city's location near Phoenix also makes it an attractive spot for those looking to explore the broader metro area without staying in the bustling downtown Phoenix.

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Frequently Asked Questions

The average apartment rent in Tempe is around $1,912, with variations based on size and neighborhood. For instance, studio apartments start at $1,367, one-bedroom apartments at $1,447, and two-bedroom apartments at $1,745. 


This pricing structure provides a benchmark for short-term rental pricing, considering that short-term rentals might command higher nightly rates due to their flexibility and amenities.

Over the past five years, the short-term rental market in Tempe has shown resilience. While national trends indicate an increase in short-term rental supply and a stabilization in occupancy rates post-COVID, Tempe's market has managed to maintain a strong performance. 


Due to the unique demographic of Tempe, which includes a significant portion of transient populations due to the university. 

The market in Tempe faces typical challenges like regulatory scrutiny over short-term rentals, competition from hotels, and the need for property management to keep up with guest expectations. 


However, opportunities arise from the continuous demand from university-related activities, the growth of remote work encouraging longer stays, and the trend towards unique, personalized lodging experiences over traditional hotel stays.

Key Performance Indicators

Best Month

March

YoY Revenue Change

4.18%

Occupancy Rate

69%

Avg Daily Rate

$150 (mid-scale)

No. of Listings (Avg)

1,984

Regulation

Lenient

Tempe stands out as a stable and potentially lucrative market for short-term rentals

LOCAL EVENTS & ATTRACTIONS

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(623) 688-0731

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Scottsdale, AZ, 85258

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