Tempe, AZ Real Estate Market

Source & Methodology

Analytics built by:   Location, Inc.

Raw data sources:   American Community Survey (U.S. Census Bureau), U.S. Department of Housing and Urban Development, Federal Housing Finance Agency.

Date(s) & Update Frequency:
  • Home Values, Rents: Reflects Q4 2021. Updated quarterly.
  • Setting, Housing Stock, Homeownership: 2020 (latest available). Updated annually.

Methodology:   NeighborhoodScout uses over 600 characteristics to build a neighborhood profile… Read more about Scout's Real Estate Data

Tempe, AZ Housing Market Trends

With 180,587 people, 76,218 houses or apartments, and a median cost of homes of $425,450, Tempe real estate is some of the most expensive in Arizona, although Tempe home values aren't among America's most expensive.

Large apartment complexes or high rise apartments are the single most common housing type in Tempe, accounting for 40.80% of the city's housing units. Other types of housing that are prevalent in Tempe include single-family detached homes ( 39.86%), row houses and other attached homes ( 8.16%), and a few duplexes, homes converted to apartments or other small apartment buildings ( 7.89%). Cities that are predominantly high-density buildings are relatively uncommon in the US. Because of the density, these types of cities are often walkable and compact, and often have a lively downtown.

People in Tempe primarily live in small (one, two or no bedroom) units, chiefly found in large apartment complexes or high rise apartments. Tempe has a mixture of owner-occupied and renter-occupied housing.

There is a lot of housing in Tempe built from 1970 to 1999 so parts of town may have that "Brady Bunch" look of homes popular in the '70s and early '80s, although some of these houses were built up through the early '90s as well. There is also a lot of housing in Tempe built between 1940-1969 ( 17.29%). A lesser amount of the housing stock also hails from between 2000 and later ( 17.10%).

Tempe Home Appreciation Rates

In the last 10 years, Tempe has experienced some of the highest home appreciation rates of any community in the nation. Tempe real estate appreciated 207.35% over the last ten years, which is an average annual home appreciation rate of 11.88%, putting Tempe in the top 10% nationally for real estate appreciation. If you are a home buyer or real estate investor, Tempe definitely has a track record of being one of the best long term real estate investments in America through the last ten years.

Appreciation rates are so strong in Tempe that despite a nationwide downturn in the housing market, Tempe real estate has continued to appreciate in value faster than most communities. Looking at just the latest twelve months, Tempe appreciation rates continue to be some of the highest in America, at 33.00%, which is higher than appreciation rates in 98.98% of the cities and towns in the nation. Based on the last twelve months, short-term real estate investors have found good fortune in Tempe. Tempe appreciation rates in the latest quarter were at 11.85%, which equates to an annual appreciation rate of 56.53%.

Importantly, NeighborhoodScout’s exclusive research found that Tempe's housing market shows one of the <a href="/blog/highest-appreciating-cities">top real estate appreciation rates in the U.S.A.</a> in the latest quarter, which may signal the city’s near-future real estate investment strength.

Relative to Arizona, our data show that Tempe's latest annual appreciation rate is higher than 80% of the other cities and towns in Arizona.

One very important thing to keep in mind is that these are average appreciation rates for the city. Individual neighborhoods within Tempe differ in their investment potential, sometimes by a great deal. Fortunately, you can use NeighborhoodScout to pinpoint the exact neighborhoods in Tempe - or in any city or town - that have the best track record of real estate appreciation, by the latest quarter, the last year, 2 years, 5 years, 10 years, or even since 2000, to assist you in making the best Tempe real estate investment or home purchase decisions.

Average Home Values

 

Median Home Value:
$425,450

Tempe, AZ HOME PRICES

> $1,630,000
0.9%
0.9%
$1,222,001 - $1,630,000
1.5%
1.5%
$815,001 - $1,222,000
6.3%
6.3%
$652,001 - $815,000
8.6%
8.6%
$489,001 - $652,000
20.5%
20.5%
$326,001 - $489,000
31.5%
31.5%
$163,001 - $326,000
19.9%
19.9%
$81,001 - $163,000
2.4%
2.4%
$0 - $81,000
8.3%
8.3%
0.0% 100.0%
% OF HOMES
Value Relative To State

Very High for Nation

Very High for AZ

Value Relative To Nation

Number Of Homes And Apartments:
76,218

Tempe Appreciation Rates

 
Time Period Total Appreciation Avg. Annual Rate Compared To
AZ*
Compared To
America*
Latest Quarter:
2021 Q3 - 2021 Q4
Last 12 Months:
2020 Q4 - 2021 Q4
Last 2 Years:
2019 Q4 - 2021 Q4
Last 5 Years:
2016 Q4 - 2021 Q4
Last 10 Years:
2011 Q4 - 2021 Q4
Since 2000:
2000 Q1 - 2021 Q4
233.32% 5.62%
9
10
* 10 is highest

Rent & Ownership

 

Average Market Rent:
$2,058 / per month

Homeownership Rate

Owners
38.0%
38.0%
Renters
62.0%
62.0%
Vacant
8.2%
8.2%
0.0% 100.0%
% OF HOMES

Housing Market Details

 

Age of Homes

2000 or Newer
17.1%
17.1%
1970 - 1999
64.9%
64.9%
1940 - 1969
17.3%
17.3%
1939 or Older
0.7%
0.7%
0.0% 100.0%
% OF HOMES

Types of Homes

Single-Family
39.9%
39.9%
Townhomes
8.2%
8.2%
Small Apt. Buildings
7.9%
7.9%
Apt. Complexes
40.8%
40.8%
Mobile Homes
3.3%
3.3%
Other
0.0%
0.0%
0.0% 100.0%
% OF HOMES

Home Size

No Bedroom
9.6%
9.6%
1 Bedroom
15.2%
15.2%
2 Bedrooms
29.4%
29.4%
3 Bedrooms
28.8%
28.8%
4 Bedrooms
14.6%
14.6%
5 or more bedrooms
2.5%
2.5%
0.0% 100.0%
% OF HOMES