Surrounded by the Sonoran Desert and packed with things to do, the city of Scottsdale provides a unique escape for vacationers. Fine dining, high-end shopping, luxurious spas, weekly ArtWalks, and over 200 top-notch golf courses set the stage at this highly popular southwestern hotspot.
Both the activities and the sunny weather draw 11 million visitors to this travel hub each year, which creates serious profit potential for buyers who make the right Scottsdale real estate investment.
To help you understand the earning opportunity of a Scottsdale vacation rental investment, we created a free, downloadable vacation rental market analysis. Inside you’ll find:
The findings in this analysis are based on Evolve’s Scottsdale market averages in the last year and provide a general baseline for performance potential. They’re designed to help inform smart buying decisions when investing in the Scottsdale rental market.
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Multi-generational families on spring break, retirees embracing downtime, and golf enthusiasts chasing the sun continually pin Scottsdale as a must-visit location. The surrounding mountain parks have trails for all skill levels, while the downtown area — with Fashion Square, Old Town, and the Arts District — hosts an eclectic array of live events, cultural activities, and other attractions.
It’s no coincidence, then, that Scottsdale tourism starts to climb early in the year. Occupancy rates peak from February through April as big local events like the WM Phoenix Open at TPC Scottsdale and the Major League Baseball Cactus League hit the calendar, and kids get out for winter and spring breaks. Demand tends to dip in summer months (when temperatures in the area can pass 100 degrees Fahrenheit), but it typically rises again from October to December as snowbirds and families return for holiday travel.
The median home price in Scottsdale currently hovers around $751,000. This number has been on the rise in the last year, reflecting high real estate investment demand. Here’s the great news: our Real Estate Services (RES) team says those interested in the Scottsdale rental market could also break into a nearby area at a lower cost. Mesa’s median list price clocks in around $413,000, for example, Tempe sits at roughly $447,000, and Phoenix is at about $399,000.
With established, tourist-centric demand and dual-seasonality, investors can generate solid revenue in the Scottsdale rental market. To gauge just how much you can make with vacation rental, consider these important factors.
When evaluating home size, four- or five-bedroom properties are where it’s at in Scottsdale. According to our data, these larger homes tend to see the most nights booked and make up over a third of local inventory. Plus, multi-bedroom properties of this size usually allow you to charge higher daily rates — creating a snowball effect that could lead to higher total annual revenue.
If you’re after a smaller investment property, three-bedroom homes are another viable option, as they host the most total nights booked after four- and five-bedrooms. They also make up over a quarter of the Scottsdale rental market’s available inventory, further expanding your house hunting options.
As you search for the right Scottsdale real estate investment property, remember that multi-generational family groups are popular travelers here. So look for properties that give you the opportunity to add sleeper sofas, bunks, and daybeds. Boosting the occupancy of any home size can help increase your earning potential in the long run.
Guests want to be close to downtown and Old Town, so our RES team says it’s wise to look for homes in residential neighborhoods just north or east of that central area. You can find more competitive home prices in these convenient communities, while giving guests privacy and easy access to popular must-sees like Taliesin West and McDowell Mountain Regional Park.
As a bonus, investing in the northeast area of Scottsdale also gives guests the quickest commute to nearby trailheads and mountain views.
From its spas and golf courses to high-end dining options, Scottsdale is often seen as a place for luxury vacations — so your guests will appreciate and expect all the top amenities at their vacation rental, too.
Bring resort-like touches into your home by designing your interior with high-end furniture, appliances, and bedding. Create thoughtful outdoor spaces by shading patio areas and adding lounge seating, playful putting greens, and gas grills. And if you want to go the extra mile, our RES team says swimming pools are the number one amenity guests look for when they travel to Scottsdale.
As a family destination, it’s also important to make your home kid-friendly with amenities like entertainment systems and cribs. Lots of families traveling to Scottsdale hope to bring along their pets, too, so champion pet-friendly hospitality by including thoughtful touches like water bowls, toys, and doggy beds — both inside and outdoors.
Year after year, millions of travelers come to Scottsdale for sunshine and fun — and that means vacation rental investors have the opportunity to earn not-going-anywhere profit.
Take a deeper dive into this market’s performance by downloading our free Scottsdale Vacation Rental Market Analysis today. You’ll find tons of useful information, including:
Searching for the right Scottsdale real estate investment should feel as refreshing as an ice-cold lemonade on a sunny Arizona day. Use our insights to keep you cool as you navigate your way to vacation rental success.