Tempe, AZ—85281
Real Estate Data & Market Trends
Key Metrics at a Glance
Home Price Trends — Tempe, AZ
As of Oct '25, the median home price in Tempe, AZ is $401,000, with a year-over-year change of -4.0%. This indicates that home prices in Tempe, AZ are decreasing. According to Zillow, the 1-year price projection is -0.1%, suggesting a relatively flat housing market in the next year.
Cost per Home Type
| Home Type | Median Home Value | YoY % Change |
|---|---|---|
All Homes | $401,000 | -4.0% |
| Single Family | $422,000 | -4.5% |
| Condos | $317,000 | -1.2% |
Cost per Home Size
| Home Size | Median Home Value | YoY % Change |
|---|---|---|
1 Bed | $268,000 | -1.8% |
2 Bed | $346,000 | -3.1% |
3 Bed | $438,000 | -4.2% |
4 Bed | $501,000 | -3.8% |
| 5 Bed | $554,000 | -3.0% |
% of Housing Stock
Rental Trends — Tempe, AZ
As of July '25, Rentcast reports the average rent in Tempe, AZ is $1,970, with a year-over-year rent change of -7.9%. Per bedroom, the median rent as of July '25 in Tempe, AZ is studios: $1,170, 1-bedrooms: $1,220, 2-bedrooms: $1,780, 3-bedrooms: $2,600, 4-bedrooms: $3,040. The most common rental property sizes in Tempe, AZ are 2-bedroom and 1-bedroom, accounting for 40.6% and 27.8% of the rental stock.
| Type | Median Rent | Average Rent |
|---|---|---|
| Average Rent | $1,700 | $1,970 |
| Studio Rent | $1,100 | $1,170 |
| 1 Bed Rent | $1,220 | $1,220 |
| 2 Bed Rent | $1,650 | $1,780 |
| 3 Bed Rent | $2,600 | $2,600 |
| 4 Bed Rent | $2,800 | $3,040 |
% of Rental Stock
Property Listings — Tempe, AZ
As of Oct '25, Realtor.com reports that the median days on market for a home in Tempe, AZ is 70. This is a increase of 37.0% from last year, suggesting that homes are sitting on the market longer than last year. The percentage of listed homes with a reduced price is 40.0%, representing a large inventory and a lot of supply pressure on home prices.
| Metric | Zip Code Average | Year over Year % Change |
|---|---|---|
Median Listing Price | $490,000 | 3.0% |
Listing Count | 94 | 39.0% |
| Listings as % of Homes | 0.2% | 39.0% |
Days on Market | 70 | 37.0% |
Demographics — Tempe, AZ
As of the latest ACS Survey released in 2023, Tempe, AZ has a population of 70,700, which has increased by 8.3% over the past 5 years. Tempe, AZ is a less popular place for families, as children make up 9.1% of the population. The area has a highly educated workforce, with 48.7% of adult residents holding a bachelor’s degree or higher. There are some residents working remotely, with 18.7% reporting working from home.
| Metric | Latest Census | YoY % Change |
|---|---|---|
Population | 70,700 | 8.3% |
% Under 18 | 9.1% | 3.4% |
% Seniors | 6.2% | 24.0% |
% WFH | 18.7% | 356.1% |
% w/ College Degree | 48.7% | 20.0% |
As of the latest ACS Survey released in 2023, Tempe, AZ is a predominantly white area, with 47.9% of the population identifying as white. The white population has shrunk by 8.9% in the last 5 years. The second most common race or ethnicity in Tempe, AZ is hispanic, making up 24.2% of the population. Foreign-born residents account for 17.6% of the population in Tempe, AZ, and this percentage has decreased by 22.5% as of the ACS Survey 5 years prior, suggesting fewer immigrants are calling the area home.
Race and Ethnicity
| Metric | Latest Census | 5-Year % Change |
|---|---|---|
% White | 47.9% | -8.9% |
% Black | 7.2% | 33.3% |
% Hispanic | 24.2% | 4.3% |
% Asian | 12.3% | -3.9% |
% Foreign Born | 17.6% | -22.5% |
Mortgage and Risk — Tempe, AZ
According to HUD data as of 2023, there were 333 mortgage originations in Tempe, AZ, of which 87.0% of loans were conventional mortgages. The average loan-to-value was 65.0%, with 27.0% above 90% LTV (very high). This implies large mortgage risk in Tempe, AZ. Investor activity is low, as 8.0% of loans were by investors. 11.0% of loans were cash-out refinances, suggesting many homeowners are tapping equity.
Mortgages
| Metric | Zip Code Average |
|---|---|
Total Loan Originations | 333 |
% Conventional Loans | 87.0% |
% Government Loans | 13.0% |
% Investor Loans | 8.0% |
% Second Loans | 5.0% |
% Cash Out Refinance | 11.0% |
Loan Activity
Rentals and Section 8 — Tempe, AZ
As of 2024, the percent of homes in Tempe, AZ under the Section 8 program is 2.4%. This is considered low, suggesting that the neighborhood is sparsely composed of Section 8 homes. Section 8 opportunity is good when HUD pays more than market rent. In Tempe, AZ, all tracked home sizes have HUD payment amounts above market rent, suggesting strong Section 8 opportunity across the board.
Section 8 Market Size
Total Units under HUD | 486 |
Total Units Section 8 | 486 |
% Rentals under Section 8 | 2.4% |
% Occupied Section 8 | 90.4% |
Section 8 Opportunity
| Home Size | HUD Premium | Market Rent | Max HUD Rent |
|---|---|---|---|
| 1 Bedroom | $620 | $1,220 | $1,840 |
| 2 Bedroom | $490 | $1,650 | $2,140 |
| 3 Bedroom | $280 | $2,600 | $2,880 |
| 4 Bedroom | $420 | $2,800 | $3,220 |
Affordability — Tempe, AZ
Home Price to Income Ratio
| Metric | Zip Code Average |
|---|---|
| Home Price to Income Ratio | 7 |
| Median Home Price | $401,000 |
| Median Household Income | $59,100 |