Phoenix and Tucson’s rental markets are changing, and investors should take notice. A recent Point2Homes study (2017-2022) reveals that renters are staying in homes longer than before—especially in 3-bedroom houses. This shift presents a golden opportunity for investors looking for stable, long-term rental income.
Renters Are Staying Longer
One of the biggest trends in the study is that renters are moving less frequently. Nationwide, the percentage of renters who move within a year has dropped from 26.7% to 22.2%. Meanwhile, those staying 5-9 years and 10+ years have increased from 16% to over 18%.
In Phoenix and Tucson, the trend is even more pronounced:
- In Phoenix, the number of renters who move in less than a year has dropped from 27.5% to 23.8%.
- In Tucson, the number has dropped from 36.6% to 26.6%, a significant 10.1 percentage point decrease.
- Renters staying 5+ years are on the rise in both cities, making long-term rental income more predictable for investors.
3-Bedroom Homes Are in High Demand
If you’re an investor wondering what type of property to buy, the answer is clear: 3-bedroom homes.
- In Phoenix, over 50% of house renters prefer 3-bedroom homes—higher than the national average of 47%.
- In Tucson, 43.3% of house renters choose 3-bedroom homes, further reinforcing the demand for spacious rental properties.
This preference suggests that families and long-term renters are looking for more space, making these properties a solid investment choice.
The Rise of Single-Family Rentals
More renters are choosing single-family homes than ever before. Nationwide, nearly one-third of all renters now live in single-family homes. In Phoenix and Tucson, this trend is growing, driven by renters seeking stability, extra space, and a home-like environment. For investors, this means strong demand, lower turnover, and the potential for long-term appreciation.
My Take: Opportunities Are Everywhere
I get it—prices are high, and it feels like a tough market to invest in. But here’s the thing: inventory is also high, and if you know the Phoenix market like I do, you can still find great deals. More than ever, you can come across homes that need work, and with the right vision, those properties can turn into prime rental opportunities.
The golden opportunity right now? A 3-bedroom home near a college or university—think Arizona State University or University of Arizona. Student housing is always in demand, and these properties can generate strong rental income. But let’s be real—expect the kids to beat the shit out 💩💩💩 of it. So, when updating the property, go for durable materials and budget for extra maintenance. Factor these costs into your profit and loss (P&L) calculations to make sure your investment pays off in the long run.
Why This Matters for Investors
If you’re looking for a smart investment in Phoenix or Tucson, consider these key takeaways: ✔ Longer tenant stays mean less turnover and fewer vacancy costs. ✔ 3-bedroom homes are in high demand, making them easier to rent and keep occupied. ✔ Single-family rentals are a growing market, offering strong returns and appreciation potential.
Phoenix and Tucson’s rental markets are evolving, and now is the perfect time to take advantage of these trends. If you’re ready to invest in a property that renters don’t want to leave, the numbers speak for themselves.
For more details on this study, check out Point2Homes’ full analysis.
AriZona Real Estate insider! 
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