Your Tempe, AZ Real Estate Questions Answered

Access to a large metropolitan area. History dating back to the Hohokam indigenous peoples. Centuries-old canals and a lake. A dense urban environment featuring Arizona State University. Suburban living between Phoenix and Mesa. If it seems like Tempe, AZ, has a little bit of everything, that’s because Tempe does have a little bit of everything that makes living in the Phoenix metro so popular.

But how is the Tempe real estate market, and what’s it like to live there? Let’s answer the most pressing questions about Tempe real estate and what you’ll need to know if you’re considering a move.

About Tempe, AZ

A city in Arizona’s expansive Maricopa County, Tempe is at the heart of the metro and Salt River Valley. Find Phoenix to the west, Scottsdale to the north, and Mesa to the east. 

Tempe was an agricultural area throughout most of its history. It saw a spike in growth when World War II veterans returned looking for an area to settle in. That meant exponential growth for a “small teachers college,” which in 1958 became Arizona State University, home of the Sun Devils. 

Today, Tempe is the eighth-largest city in Arizona. It’s tightly connected to the Phoenix metropolitan area, also known as the Valley of the Sun. But having the college, an extensive freshwater reservoir, and perks of its own, like the Tempe Center for the Arts, help add a distinct culture to the city.

What county is Tempe, AZ, in?

Arizona’s Maricopa County is one of the country’s largest in terms of population and area. It’s the primary county in Arizona thanks to holding the state’s largest city and capital, Phoenix. Named after the Maricopa tribe, the county is also large enough to host five Native American reservations. 

Quality of life in Maricopa County is generally high, and the hot climate keeps events going on year-round. For Maricopa County, many of these events draw the communities closer together. For example, the Arizona Cardinals of the NFL have their headquarters in Tempe but play on the other side of Phoenix in Glendale.

Is Tempe, AZ growing?

Tempe boasts a population of 180,587 as of the 2020 US Census. Thanks to a bustling economy, it employs even more, with 200,000 people working in the city. Tempe calls itself a “net importer of jobs,” which is one reason Tempe may be experiencing growth. Some estimates foresee Tempe growing to over 217,100 people by 2030.

What is the cost of living in Tempe, AZ?

According to Sperling’s Best Places Index, the Tempe cost of living is a notch above the median across the nation, rating overall at 112.6, where 100 is the national median. That makes it about 13% more expensive to live in Tempe.

The index cites a city known for recreation like golfing, hiking, and kayaking, as well as Tempe’s status as a university town, as reasons people like moving here. That popularity pushes up prices, partially for homes in Tempe and transportation.

The MIT Living Wage Calculator further reflects the higher cost of living. For example, two adults working to care for three kids would need to earn $46.84/hour to meet the standard living wage. For reference, the living wage for one adult without any children would be $18.48/hour, far above the national minimum wage, currently set at $7.25 an hour.

What are the prices for Tempe real estate?

Homes are selling for quite a lot in the Tempe real estate market. In 2022, the Daily Independent pointed to a local tech boom driving up demand for homes, which in turn drove real estate prices to new heights. According to the Tempe Sun, a median list price increase between 2022 and 2023 brought that median home price to $404,500 in the area. 

That reflects a 205.26% increase in home appreciation rates, meaning that the people who haven’t sold their homes are seeing equity rise sharply. Homeowners in Tempe are currently motivated to stay where they are, potentially dwindling the real estate inventory.

August 2023 real estate numbers show a median sales price of $570,000, up 10% from 2022 to 2023. The average sales price was $668,580, a 13% increase over the previous year. That may be due to declining inventory: the inventory of homes for sale dropped 44% from 2022 to 2023, but buyer pressure is keeping prices on the move.

Are there any waterfront properties found in Tempe, AZ?

The Salt River flows through the northern portion of Tempe, AZ, giving the community public access to some waterfront on both sides. There’s excellent walking at the Canal Trailhead, a portion of old Hohokam Canals near the river. It’s here where you’ll find some of Tempe’s history coming to life, and it’s an area where hiking and kayaking help give the city its urban-yet-offbeat flavor.

Downtown Tempe rests on the southern side of the Salt River. 

But you’re out of luck for homes directly on the Salt River or Tempe Town Lake. You may find some waterfront properties east of the Tempe Town Lake Rural Road Bridge and apartment and commercial buildings to the north side with water views. Parts of southern Tempe have reservoirs for lakefront living, like near Kiwanis Lake.

Are there golf course communities in Tempe, AZ? 

Tempe has no formal golf course communities inside its city limits. Still, if that’s a lifestyle you are interested in, you have options in the greater Phoenix metro. Check out Scottsdale or Glendale.

What is the property tax rate for Tempe, AZ?

The combined property tax levy currently stands at 2.3779 in Tempe, per a recent proposal to raise those rates to 2.4065. Keep in mind that the “combined” rate can be a bit complicated with primary and secondary levies. As Tempe’s information states, the 2023 property tax rate per $100 of assessed property value was 0.8776. 

What neighborhoods are in Tempe, AZ?

We’d be remiss if we didn’t elaborate on Arizona State University, one driving community centers of Tempe. The campus is just south of the Salt River along University Drive and Apache Boulevard, which run east-west through the campus. 

This area is also the site of two major entertainment attractions: Mountain America Stadium and Desert Financial Arena. Mountain America Stadium is the home of the Sun Devils, with a 2019 renovation bringing it up to par with other open-air college stadiums at the FBS level, also known as “Division 1.”

So, around these areas, the Tempe real estate market tends to cater more to students and travelers. Nearby University Heights and Alegre Community, straddling either side of McClintock Drive, features many apartments, single-family residences, and businesses along Apache Boulevard. To Arizona State’s west, the Mitchell Park West and Gililland areas are clustered with single-family homes. 

But as you move away from the University, it becomes more suburban, with master-planned neighborhoods and classic mid-century-styled communities.

Alta Mira has a reputation as an affluent neighborhood in Tempe, thanks to a bevy of large, upscale homes and townhouses. Those seeking an active lifestyle will appreciate its community sidewalks and dedicated bicycle lanes. 

Meanwhile, Cypress Southwest, the south-central area of Tempe, has a low crime rate and good access to freeways that will take you throughout the Phoenix area. Property prices can be on the lower end for Mesa.

Dava Lakeshore is another neighborhood to check out for a relatively lower cost of living and affordable single-family homes. It’s also rated one of the city’s safest neighborhoods, making it great for finding a starter home.

How is golf in Tempe, AZ?

Tempe isn’t only a great climate for golf. Still, it features ready access to the entire Phoenix metro area, which makes hundreds of golf courses available to residents. Popular clubs in Tempe include Grass Clippings at Rolling Hills, a public golf course near the canals. Not far from Tempe Beach Park, you’ll find Skybox Golf, where you can enjoy golf simulations or arrange to install them in your home. 

Ken McDonald Golf Course is a popular course for Mesa. At 6,743 yards, it’s got 18 holes for play and great local reviews rating it among the best of the daily fee golf courses in the Phoenix area. 

What areas are near Tempe, AZ?

You might consider Tempe to be smack-dab in the middle of the Phoenix metropolitan area: it shares a border with Phoenix, Scottsdale, and Mesa, three of the major communities in the area. To the southwest, you’ll find the South Mountain Park and Reserve, home of the aforementioned Pima Canyon Trailhead. 

To the city’s southeast are Chandler and Gilbert, two suburbs of the Phoenix area. Zoom out, and you’ll see Tonto National Forest to the east of the entire metropolitan area. Because this population-dense area is in the Sonoran desert, it has an interesting mix of wild, open country and the modern amenities of urban living.

What to know about living in Tempe, AZ

You won’t get bored in Tempe. Rabid Sun Devils fans will always have their fill of sports: Arizona State is prominent in football, basketball, ice hockey, track & field, and more. 

You didn’t expect a beach in Tempe, did you? But you’ll find one at Tempe Beach Park, located on the Town Lake. You’ll be surprised at the amount of aquatic activity thanks to Tempe Town Lake, a reservoir in the Salt River. Tempe has developed the area as an oasis in the sprawl of the Phoenix metropolitan area. It’s perfect for water sports, picnics, or walking. 

Being the primary college town of the Phoenix area gives Tempe a unique flavor that’s all its own. And while communities like Mesa, Glendale, Scottsdale, and Phoenix might look similar from space, places like Tempe highlight just how diverse the region’s offerings can be.