Phoenix Short-Term Rentals: Where Tourism Drives Opportunity
Phoenix short-term rentals are thriving thanks to year-round sun and top attractions like the Desert Botanical Garden and Heard Museum. Investors recognize Phoenix as a hub for vacation rentals, given constant tourism inflow driven by events, golf, hiking, and local festivals such as the Arizona Balloon Classic.
Quick Takeaways
- Over 7,800 active Phoenix listings in early 2025
- Average Daily Rate (ADR): $178
- Occupancy: 61%, with 2% yearly gain
- YOY rental revenue up 4% from 2024
- Average cancellation rate rose to 11%
- Target urban convenience and outdoor proximity for best returns
Market Growth & Active Listings
The Phoenix short-term rental market has grown significantly over the past year, now boasting over 7,800 active listings. This jump owes much to high visitor demand and the city’s vibrant festival scene.
Rental Rates, Occupancy & Revenue Trends
Phoenix’s Average Daily Rate (ADR) for STRs recently climbed to $178. Occupancy has reached 61%, marking a 2% increase over last year. Year-over-year revenue for vacation rentals in Phoenix rose 4%—outpacing inflation in many other metro areas.
Cancellations & Booking Patterns
Short-term rental investing in Phoenix faces a new challenge: cancellations. The city’s average cancellation rate grew to 11%. Most hosts attribute this to booking flexibility, so carefully consider your cancellation policy.
Area Insights for STR Investors
For best returns, focus on neighborhoods near attractions like Camelback Mountain, Roosevelt Row, or Arizona Science Center. Proximity to downtown events and transport links boosts occupancy and ADR.
StaySTRa Analyzer
If you’re evaluating a specific property or narrowing your investment focus, the StaySTRa Analyzer lets you plug in an address and see actual STR performance data. It’s free to use and built for investors.
Optimizing Your Investment: Pro Tips
Phoenix remains a hot market despite rising cancellations. Consider setting minimum stays, optimizing for festivals, and leveraging platforms like Airbnb. Align your rental calendar with busy local events and attractions like the Phoenix Art Museum and Arizona Science Center to maximize bookings.
Conclusion
Vacation rentals in Phoenix continue to offer compelling ROI for investors. Use local market data and analysis tools to guide your STR investing in Phoenix. Stay proactive to maintain a competitive edge.
