Housing Market Overview
The median home price (often called the average home price), rent costs, affordability metrics, and housing stock characteristics for this housing market.
Housing Market Overview
| Metric | Tempe | Arizona Avg | US Average |
|---|---|---|---|
| Median Home Price | $416,808 | $340,223 | $242,182 |
| Price Trend (Annual %) | 13.5% | 12.4% | 8.2% |
| Median Gross Rent | $1,616 | $1,430 | $1,342 |
| Rent Trend (Annual %) | 7.4% | 6.3% | 5.1% |
| Household Income Trend (Annual %) | — | — | — |
The median home price in Tempe is about 23% higher than in Arizona. Rent is about 13% higher than the Arizona average.
Median Home and Rent Price Trends
Median Home Prices, 2015-2023
Median Rent Prices, 2015-2023
Both home prices and rent are rising in Tempe, up about 13.5% and 7.4% a year respectively. Home prices are changing faster.
Median rent in Tempe rose about 70.1% between 2015 and 2023, from $950 to $1,616. Over the same span, rent in Arizona rose about 56.7%.
Affordability
On average, housing unit costs 5.4 yearly household incomes in Tempe.
Buying the median-priced home in Tempe costs roughly 21.5 years of rent at the median monthly rate. That is a relatively high price-to-rent ratio, which tends to favor renting over buying in Tempe. The price-to-rent ratio in Arizona is about 19.8.
| Metric | Tempe | Arizona Avg | US Average |
|---|---|---|---|
| Median Home Price | $416,808 | $340,223 | $242,182 |
| Median Household Income | $77,892 | $77,100 | $78,145 |
| Price-to-Income Ratio | 5.4 | 4.4 | 3.1 |
Home Prices vs Income Over Time
Between 2015 and 2023, the median home price in Tempe rose about 102.6%, while median household income rose about 58.3% between 2009 and 2023 — the home price grew faster than income.
Income Growth vs Housing Cost Growth (Year-over-Year %)
Compare income and housing cost trends.
Occupancy & Tenure
| Metric | Tempe | Arizona Avg | US Average |
|---|---|---|---|
| Homeownership Rate | 37.8% | 59.6% | 58.2% |
| Rental Rate | 53.2% | 29.4% | 31.3% |
| Vacancy Rate | 9.0% | 11.0% | 10.6% |
| Median Tenure (years) | 10.0 | 13.0 | 15.0 |
| Median Year Moved In | 2016 | 2013 | 2011 |
Tempe has a homeownership rate of 37.8%, lower than the Arizona average of 59.6%. Its housing vacancy rate is 9.0%, compared with 11.0% in Arizona.
Housing Stock
| Metric | Tempe | Arizona Avg | US Average |
|---|---|---|---|
| Average Household Size | 2.28 people | 2.54 people | 2.54 people |
| Median Structure Built Year | 1985 | 1990 | 1978 |
| Median Number of Rooms | 4.6 | 5.3 | 5.5 |
The typical housing unit in Tempe was built around 1985. On average, 2.3 people live in a home with about 4.6 rooms, staying for about 10.0 years on average.
Frequently Asked Questions
Common questions about the housing market in Tempe, Arizona.
What is the median home price in Tempe, Arizona?
The median home price in Tempe, Arizona is $416,808, higher than the Arizona average of $340,223.
What is the average home price in Tempe, Arizona?
The typical home price in %s, reported as the median sale price, is %s. The median is used instead of a mathematical average because it is not skewed by a small number of very expensive or very cheap homes, so it better reflects what a typical buyer pays.
What is the median rent in Tempe, Arizona?
The median gross rent in Tempe, Arizona is $1,616 per month, higher than the Arizona average of $1,430.
What was the median gross rent in Tempe in 2020?
In 2020, the median gross rent in Tempe, Arizona was $1,226 per month.
What is the price-to-rent ratio in Tempe, Arizona?
The price-to-rent ratio in Tempe, Arizona is about 21.5, meaning it would take roughly 21.5 years of rent payments at the median rent to equal the median home price. That is a relatively high price-to-rent ratio, which tends to favor renting over buying in Tempe.
Are home prices or rent rising faster in Tempe, Arizona?
Both home prices and rent are rising in Tempe, up about 13.5% and 7.4% a year respectively. Home prices are changing faster.
What is the homeownership rate in Tempe, Arizona?
37.8% of households in Tempe, Arizona own their home, lower than the Arizona average of 59.6%.
What is the vacancy rate in Tempe, Arizona?
The housing vacancy rate in Tempe, Arizona is 9.0%, lower than the Arizona average of 11.0%.