Recreation: Golf, Tennis, Pickleball, Swimming
Medium Home Price: $472,863
Top Rental Months: October – April
Cost of Living: $24.70 – Required Living Wage (vs. $25.02 US Average)
The Phoenix Valley is widely recognized as a prime destination to escape the harsh winters found in other parts of the country. With its low humidity and consistent temperatures, Phoenix offers the perfect environment for outdoor recreation, especially world-class golf courses that dot the valley. While Phoenix is a vast and sprawling metropolitan area, it’s essential for potential investors to become familiar with the cities and townships that make up this region. The most desirable areas are often not in downtown Phoenix but rather in the surrounding municipalities, all conveniently connected by well-designed highways, including the 101—a giant ring that links these communities.
If you love golf and are seeking a close-knit retirement community, few places can compare to the Phoenix Valley. Additionally, the area is ideal for investors, offering a reliable rental market thanks to the city’s numerous sporting events—such as Spring Training and the Waste Management Phoenix Open—and its booming economy, bolstered by several major infrastructure projects, including a multi-billion-dollar chip plant. In this profile, we’ll share our top tips on what to look for, potential red flags, and our recommended neighborhoods to help you find your dream vacation property.
Finding Your Oasis in Phoenix Vacation Properties
Navigating the Phoenix market can be daunting due to the sheer number of options available. We’ll review some of the most important niche factors that can distinguish a solid investment from just another property in the desert.
- Live and Die by the Golf Course – Golf is the premier activity in Phoenix, and as a result, many vacation properties are located within complexes featuring 18-hole courses. Whether golf is a passion or a casual interest, it’s essential to consider the quality of the adjoining course when researching properties. Is the golf course well-maintained? Is it popular among the locals? Additionally, delve into its governance—Is the course independent, owned by the developer, or run by the HOA? Golf courses can be a revenue source for an HOA, potentially offsetting costs for other amenities and maintenance.
- HOA Rental Rules – Most developments in Phoenix are governed by HOAs with their own set of rules and bylaws. Pay close attention to the rental regulations. Besides common age restrictions (typically 55+), HOAs may also limit where and how often you can rent out your property. While demand is strong enough to secure monthly rentals, maximizing revenue may require taking advantage of short-term rental opportunities, especially during seasonal events like MLB Spring Training in March.
- Water, Water, Water – Access to water is critical in Phoenix. While the city has adapted well to its desert environment, access to the underground aquifer is vital for your property’s future. Phoenix is too large and important to be cut off from the Colorado River’s water supply, but be cautious of new developments on the outskirts of the valley. Always verify that the developer has obtained a Certificate of Assured Water Supply.
- Dealing with the Heat – The summer heat in Phoenix can be oppressive, particularly in July and August. Ensure that any prospective unit was built with proper insulation (it’s surprising how often this is overlooked) and has a suitable roof, preferably tiled. Additionally, having a swimming pool on the property or as a shared amenity will enhance rental appeal during the hotter months.
Phoenix Valley – Developer Spotlight – Shea Homes
Project: Ridgecrest
Shea Homes is the developer behind one of the most successful communities in Phoenix: Vistancia, located in Northern Peoria. Vistancia consists of multiple developments, each with its own unique character, demographics, and aesthetics. Their latest addition to this master-planned community is Ridgecrest, a boutique 55+ development featuring single detached homes. With plenty of social clubs, amenities, and access to the Trilogy Golf Course, Ridgecrest offers not only a vibrant lifestyle but also the security of investing with a developer known for its outstanding track record in providing home equity growth in the area.
The Best Phoenix Valley Suburbs for Vacation Properties
Scottsdale
Median Home Price: $828,565 ( 🔼 4.6% 1-year)
Scottsdale is a suburb with national name recognition, known for some of the nicest homes in Phoenix. It’s packed with amenities, including a walkable downtown and some of the best malls in the country, as well as lush greenery rarely found in other parts of the valley. This name recognition contributes to Scottsdale having the highest home prices in the valley, but this can be slightly offset by more short-term rental opportunities. When considering properties here, pay special attention to HOA rules regarding rentals and consider offering below the asking price—over 75% of homes in Scottsdale sell for less than the list price.
Peoria
Median Home Price: $498,347 (🔼 2.6% 1-year)
Peoria, located in the northwest part of the valley, is one of the fastest-growing suburbs of Phoenix. Its proximity to Glendale provides relatively easy access to State Farm Stadium (perfect for events and football games) as well as the luxury waterpark at VIA Resort, which could further drive up property values. On the downside, Peoria is one of the longest drives from the airport, but its value is expected to increase due to its proximity to the new chip plant and the rapidly developing Lake Pleasant area. When searching for property in Peoria, it’s advisable to focus on gated communities, which have brand recognition and built-in demand from existing residents.
Chandler
Median Home Price: $531,952 (🔼 3.7% 1-year)
Located in the southeast corner of the Phoenix Valley, Chandler has become one of the hottest real estate markets in the area, with an extremely low average days on the market before a sale. Its proximity to ASU provides broad rental appeal, and its burgeoning tech-based economy has breathed new life into the area. Chandler also boasts some excellent golf courses without the high green fees found in other parts of the city. However, the summer heat can be intense in Chandler, so ensure your property has pool access to stay cool, and prioritize single-story detached houses.
Thanks for reading until the end and learning about the Phoenix area! An ideal snow bird destination. Tune into your next issue and refer our email to any friends that are looking for their own spot in the sun!
Real Estate data sourced from Zillow
Cost of Living data source from Amy K. Glasmeier, “Living Wage Calculator,” Massachusetts Institute of Technology, 2024. Accessed on August 26, 2024, https://livingwage.mit.edu/.