Vacation Rental Market Analysis: Scottsdale, AZ

The Evolve Team
The Evolve Team
February 23, 2023

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: 

  • Rental income potential by property size
  • Average occupancy by property size
  • Average daily rate by property size
  • Average days booked in advance
  • Average length of stay
  • Vacation rental inventory by property size
  • Occupancy rate by month

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.

Download Our Complete Scottsdale Vacation Rental Investment Analysis

Green icon of a Southwestern home with cactus, shrub and stars

Why Scottsdale Is a Great Place to Own Vacation Rental Property

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 for Scottsdale real estate investments currently hovers around $825,000. 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 experts say 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 $440,000, for example, Tempe sits at roughly $485,000, and Phoenix is at about $425,000.

Green icon of a crystal ball with the words "profit prediction" in the middle with stars

How Much Money Can You Earn with a Scottsdale Vacation Rental?

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.

Property Size

According to our data, all rental sizes in Scottsdale are surprisingly similar in regards to nights booked, with five-bedroom homes taking a close lead. The benefit of larger multi-bedroom properties is the ability 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 same total nights booked as four- and one-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.

Property Location

Guests want to be close to downtown and Old Town, so our experts say it’s wise to look for Scottsdale real estate investments 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.

Property Amenities

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 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.

When you’re ready to explore the market, make your search easier by starting with vetted homes for sale

Download Our Full Scottsdale, AZ Vacation Rental Market Analysis

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:

  • Inventory breakdown based on property size
  • Average daily rates based on property size
  • Expected seasonality in vacation rental demand
  • Average length of stay in high and low seasons  

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.

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