Airbnb Mesa, Arizona: Market Data, Laws & Investor Guide

Mesa, Arizona is quickly becoming one of the hottest destinations for starting an Airbnb business in 2024. With its stunning desert landscapes, vibrant arts and culture scene, and proximity to top attractions like the Superstition Mountains and Saguaro Lake, Mesa offers a unique and appealing experience for travelers.

In fact, Mesa saw a staggering 23% increase in Airbnb bookings from 2022 to 2023, outpacing the national average growth rate of 17%. This surge in demand presents a golden opportunity for savvy entrepreneurs looking to capitalize on the booming short-term rental market.

But what makes Mesa such an ideal location for Airbnb hosts? For starters, the city boasts over 300 days of sunshine per year and an average temperature of 75°F, making it a year-round destination for outdoor enthusiasts and sun-seekers alike. Plus, with major events like the Mesa Arts Festival and Chicago Cubs Spring Training drawing thousands of visitors annually, there's never a shortage of potential guests.

As if that weren't enough, Mesa's affordable housing market and business-friendly regulations make it easier than ever to get started with Airbnb. The median home price in Mesa is just $415,000 - nearly 30% lower than the national median. And with no short-term rental permit required for stays under 30 days, hosts can hit the ground running without navigating complex bureaucracy.

Mesa Short-Term Rental Market Analysis

Mesa's short-term rental market has experienced significant growth over the past two years, fueled by the city's thriving tourism industry and attractive amenities. Let's dive into the key metrics and trends shaping this dynamic market.

Occupancy Rate, Nightly Rate, and Seasonality

According to AirDNA, in August 2024, Mesa's short-term rental market boasts the following metrics:

• Average Occupancy Rate: 55% (up 3% from the previous year)
• Average Daily Rate: $232 (up 5% from the previous year)
• Average Yearly Revenue: $46,574 (up 3% from the previous year)

Mesa experiences moderate seasonality, with peak demand occurring in the spring months of March and April, coinciding with popular events like the Cactus League Spring Training and the Mesa Arts Festival.

Market Growth and Tourism Industry

Mesa's short-term rental market has witnessed impressive growth over the past two years:

1. Active Listings: 2,623 (up 8% from the previous year)
2. Tourism Economic Impact: $1.1 billion in 2022 (up from $980 million in 2021)
3. Visitor Spending: $710.4 million in 2022 (up from $630 million in 2021)

The city's tourism industry has rebounded strongly, with visitor spending reaching $2 million per day in 2022. This growth has been driven by Mesa's diverse attractions, outdoor recreation opportunities, and vibrant arts and culture scene.

Key Events and Dates

Mesa hosts a variety of annual local events and festivals that draw visitors from around the country:

1. Cactus League Spring Training (February-March)
2. Mesa Arts Festival (December)
3. Roots N' Boots Queen Creek Rodeo (March)
4. Arizona Celebration of Freedom (July)
5. Mesa Marathon (February)

These events, along with year-round attractions like the Mesa Arts Center and Usery Mountain Regional Park, contribute to the city's strong tourism appeal and drive demand for short-term rentals.

Booking Durations and Mid-Term Rentals

According to host forums and rental data, the most common booking durations in Mesa are:

1. 2-3 nights: Popular for weekend getaways and event-based trips
2. 7+ nights: Common for snowbirds and longer vacations
3. 30+ nights: Attractive for remote workers and extended stays

Mesa's mid-term rental market (stays of 30+ days) is particularly strong, with 36.7% of listings offering monthly discounts. This trend has been fueled by the rise of remote work and the city's affordable cost of living compared to nearby markets like Scottsdale and Phoenix.

In conclusion, Mesa's short-term rental market is poised for continued growth in 2024 and beyond, thanks to its strong tourism industry, diverse attractions, and favorable market conditions. With attractive occupancy rates, competitive nightly rates, and a thriving mid-term rental scene, Mesa presents a compelling opportunity for Airbnb hosts and investors alike.

Best Neighborhoods in Mesa for an Airbnb Business

When starting an Airbnb business in Mesa, location is key. Hosts should look for neighborhoods that balance proximity to popular attractions, strong rental demand, and affordable housing prices. Here are the top 5 neighborhoods in Mesa for launching a successful Airbnb:

1. Downtown Mesa

As the heart of the city, Downtown Mesa offers a prime location for Airbnb hosts. This vibrant neighborhood is home to the Mesa Arts Center, museums, and a variety of restaurants and shops, making it a popular choice for tourists.

1. Average Occupancy Rate: 69%
2. Average Daily Rate: $145
3. Estimated Annual Revenue: $36,500
4. Best Performing Listing Size: 2-bedroom

Housing prices in Downtown Mesa:

1. Median Home Value: $415,000
2. Average Price per Square Foot: $269

2. Dobson Ranch

Located just south of downtown, Dobson Ranch is an up-and-coming neighborhood that offers a mix of residential charm and easy access to attractions like the Arizona Museum of Natural History and Riverview Park.

1. Average Occupancy Rate: 66%
2. Average Daily Rate: $135
3. Estimated Annual Revenue: $32,500
4. Best Performing Listing Size: 1-bedroom

Housing prices in Dobson Ranch:

1. Median Home Value: $385,000
2. Average Price per Square Foot: $255

3. Las Sendas

Situated in northeast Mesa, Las Sendas is a picturesque community known for its golf course, hiking trails, and stunning views of the Superstition Mountains. This neighborhood attracts outdoor enthusiasts and travelers seeking a peaceful desert retreat.

1. Average Occupancy Rate: 62%
2. Average Daily Rate: $180
3. Estimated Annual Revenue: $40,700
4. Best Performing Listing Size: 3-bedroom

Housing prices in Las Sendas:

• Median Home Value: $650,000
• Average Price per Square Foot: $305

4. Eastmark

Eastmark is a master-planned community in southeast Mesa that offers modern amenities and easy access to major highways, making it a convenient choice for both tourists and business travelers. The neighborhood features parks, pools, and community events that add to its appeal.

• Average Occupancy Rate: 64%
• Average Daily Rate: $130
• Estimated Annual Revenue: $30,400
• Best Performing Listing Size: 2-bedroom

Housing prices in Eastmark:

• Median Home Value: $450,000
• Average Price per Square Foot: $280

5. Alta Mesa

Alta Mesa is a quiet residential neighborhood in north-central Mesa that offers proximity to Riverview Park and Sloan Park, the spring training home of the Chicago Cubs. This area is popular with families and sports fans.

• Average Occupancy Rate: 60%
• Average Daily Rate: $125
• Estimated Annual Revenue: $27,400
• Best Performing Listing Size: 1-bedroom

Housing prices in Alta Mesa:

• Median Home Value: $350,000
• Average Price per Square Foot: $240

When choosing a neighborhood for your Airbnb business in Mesa, consider your target audience and the type of experience you want to offer. Whether you're catering to families, outdoor adventurers, or business travelers, these top neighborhoods provide a range of options to suit your investment goals and guest preferences.

Maximizing Your Revenue Through In-Demand Amenities and Properties in Mesa

To maximize your Airbnb revenue in Mesa, it's crucial to set competitive prices and offer in-demand amenities that attract guests. By analyzing the top-performing listings in the city, we've identified key factors that contribute to their success.

Setting Competitive Prices

When setting your nightly rate, consider the following factors:

• Location: Properties in popular neighborhoods like Downtown Mesa, Dobson Ranch, and Las Sendas can command higher prices due to their proximity to attractions and amenities.
• Seasonality: Mesa experiences peak demand during spring months like March and April. Adjust your prices accordingly to capitalize on high-season bookings.
• Occupancy rates: Monitor your occupancy and adjust prices based on demand. If your occupancy is low, consider lowering your price to attract more bookings.
• Competitor pricing: Use Airbnb's "Similar listings" feature to compare your price to nearby properties. Aim to price your listing competitively while still reflecting its unique value.

In-Demand Amenities

The most successful Airbnb listings in Mesa offer the following amenities:

• Pool and hot tub: With over 300 days of sunshine per year, a pool is a must-have for Mesa guests. Listings with pools can earn up to 20% more than those without.
• Outdoor space: Guests love properties with patios, balconies, or yards where they can enjoy Mesa's beautiful weather. Highlight your outdoor areas with inviting furniture and decor.
• Unique experiences: Stand out by offering local experiences like desert hikes, hot air balloon rides, or cooking classes. Partner with local businesses to create exclusive packages for your guests.
• Pet-friendly: Mesa is a dog-loving city, and pet-friendly listings are in high demand. Consider allowing pets to attract more bookings and longer stays.
• Fully-equipped kitchen: Guests appreciate the convenience of a well-stocked kitchen. Provide high-quality appliances, cookware, and dining essentials to enhance the guest experience.

Top-Performing Property Types

According to Mashvisor, the most popular and profitable property types in Mesa are:

Single-Family Homes

• Median Price: $457,000
• Average Airbnb Daily Rate: $232
• Monthly Airbnb Rental Income: $2,386
• Airbnb Cash on Cash Return: 4.00%

Townhouses

• Median Price: $425,000
• Average Airbnb Daily Rate: $180
• Monthly Airbnb Rental Income: $2,100
• Airbnb Cash on Cash Return: 5.31%

Condos

• Median Price: $265,000
• Average Airbnb Daily Rate: $153
• Monthly Airbnb Rental Income: $1,800
• Airbnb Cash on Cash Return: 4.03%

Breakdown by bedroom count:

1. 1-bedroom properties have an average occupancy rate of 69% and daily rate of $82.
2. 2-bedroom properties are the top-performing, with average annual revenue of $36,000+.
3. 3-bedroom properties command higher daily rates around $180 but slightly lower occupancy at 62%.

By offering these in-demand amenities and targeting the most profitable property types, Airbnb hosts in Mesa can maximize their revenue potential and attract a steady stream of bookings. Stay competitive by monitoring market trends and adapting your strategy accordingly.

Understanding Mesa Short-Term Rental Regulations

Mesa, Arizona, has implemented short-term rental regulations to ensure safe and responsible rental practices. As of February 1, 2023, property owners must obtain a special City of Mesa license to legally operate short-term rentals. Failure to secure this license may result in civil penalties.

In addition to the City of Mesa license, hosts must hold a Transaction Privilege Tax (TPT) license for all rentals, regardless of duration. All rental properties must also be registered with the Maricopa County Assessor's office.

Guests booking Airbnb listings for 29 nights or less in Arizona are subject to various taxes, including the Transaction Privilege Tax (5.5% of listing price), County Excise Tax (0.28% to 6.5% of listing price), and Local Transient Occupancy Taxes (1.5% to 6.0% of listing price).

To ensure neighborhood safety, hosts must post emergency contact information at their properties and respond to police inquiries within an hour. Violations of these regulations may lead to fines within a 12-month period, with the amount determined by the severity of the violation.

Mesa's short-term rental regulations prioritize licensing, taxation, and registration requirements to promote safe and responsible rental practices. Property owners must comply with these regulations to legally operate short-term rentals in Mesa.

Read our full STR regulations guide for more detailed information on Mesa short-term rental regulations, including insights from local hosts and a closer look at other policies.

Keys to Success as a Mesa Airbnb Host

Running a successful Airbnb in Mesa requires a combination of strategic planning, attention to detail, and a deep understanding of the local market. By focusing on in-demand amenities, effective marketing, and proactive risk management, hosts can maximize their revenue potential and create memorable experiences for their guests.

Popular Amenities and Design Themes in Mesa

To attract guests and stand out from the competition, incorporate these popular amenities and design elements into your Mesa Airbnb:

1. Desert-inspired decor: Embrace Mesa's Sonoran Desert location with cacti, succulents, and earth tones that create a sense of place.
2. Outdoor living spaces: Guests love properties with pools, patios, and fire pits where they can enjoy Mesa's warm weather and stunning sunsets.
3. Smart home technology: Provide convenient amenities like keyless entry, smart thermostats, and voice-controlled devices to enhance the guest experience.
4. Cozy bedding and linens: Invest in high-quality mattresses, pillows, and sheets to ensure a comfortable stay for your guests.

How to Attract Mesa Customers

To reach your target audience and boost bookings, implement these marketing strategies:

1. Optimize your listing: Use compelling photos, detailed descriptions, and competitive pricing to make your listing stand out on Airbnb search results.
2. Highlight local attractions: Showcase Mesa's top attractions, like the Mesa Arts Center and Usery Mountain Regional Park, in your listing description and guidebook.
3. Leverage social media: Share photos and updates about your Airbnb on platforms like Instagram and Facebook to build brand awareness and attract potential guests.
4. Encourage reviews: Provide exceptional service and follow up with guests to encourage positive reviews, which can help attract future bookings.

Potential Challenges and Success Tips for Mesa Airbnb Hosts

While Mesa offers a thriving short-term rental market, hosts should be aware of potential challenges and best practices for success:

1. Seasonal fluctuations: "Be prepared for slower months during the summer when temperatures soar. Consider offering discounts or targeting long-term stays to maintain occupancy." - Advice from a Mesa host on BiggerPockets
2. Regulation compliance: "Make sure you're up to date on Mesa's short-term rental regulations, including licensing and tax requirements. Non-compliance can result in fines and legal issues." - Tip shared by a host on the Airbnb Community forum
3. Maintenance and cleaning: "With Mesa's dusty desert environment, regular cleaning and HVAC maintenance are crucial. Hire a reliable cleaning service and schedule routine filter changes to keep your property in top shape." - Recommendation from a Mesa host on Reddit
4. Neighbor relations: "Be a good neighbor by setting clear house rules, monitoring guest behavior, and being responsive to any concerns. Building positive relationships with nearby residents can help prevent issues down the line." - Insight from a host on the Mesa Airbnb Host Facebook group

By implementing these strategies and staying proactive in your approach, you can navigate the challenges of hosting in Mesa and create a successful Airbnb business that delights guests and generates consistent revenue.

Using BNBCalc to Find Profitable Properties in Mesa, Arizona

Investing in a short-term rental property in Mesa can be a lucrative venture, but it's crucial to make data-driven decisions to maximize your returns. BNBCalc is a powerful tool that can help aspiring Airbnb business owners analyze properties, benchmark comparable rentals, and determine the right price and property size to ensure profitability.

1. Analyze Properties Using BNBCalc

To get started, simply enter a property address into BNBCalc's search bar. The tool will provide a detailed analysis of the property's potential as a short-term rental, including estimated monthly revenue, occupancy rates, and cash flow projections. BNBCalc uses real-time data from Airbnb and other sources to ensure accurate and up-to-date insights.

2. Benchmark Comparable Rentals

BNBCalc allows users to compare their property to other nearby rentals in the area. By analyzing the amenities, pricing, and occupancy rates of comparable listings, you can gain a competitive edge and optimize your own rental strategy. Use this information to identify in-demand features and set a competitive nightly rate that maximizes your earnings.

3. Determine the Right Price and Property Size

With BNBCalc's advanced analytics, you can determine the optimal number of bedrooms, bathrooms, and purchase price for your Mesa rental property. The tool provides detailed breakdowns of projected revenue and expenses based on different property configurations, allowing you to make informed decisions that align with your investment goals.

4. Make an Offer

Once you've identified a promising property and analyzed its potential returns using BNBCalc, it's time to make an offer. BNBCalc has partnered with STR lenders like Brian Bockholdt at Alliant Credit Union to provide investors with the lowest rates and streamlined financing options. Get prequalified and work with your real estate agent to submit a competitive offer based on your desired returns.

5. Use Our Tax Calculator

BNBCalc's tax calculator can help you determine potential tax deductions for your Mesa Airbnb, including bonus depreciation. By inputting your property details and financial information, the tool provides an estimate of your tax savings, helping you optimize your investment strategy and maximize your returns.

6. Come Up with a Buy Box

To create a successful buy box for your Mesa Airbnb investment, focus on properties that meet the following criteria:

1. Located in top-performing neighborhoods like Downtown Mesa, Dobson Ranch, or Las Sendas
2. Offers in-demand amenities like pools, outdoor spaces, and smart home technology
3. Priced competitively based on BNBCalc's revenue projections and cash flow analysis
4. Aligns with your investment goals and risk tolerance
5. Provides opportunities for value-add improvements or rental optimization

By using BNBCalc to analyze properties, benchmark rentals, and determine the right price and size, aspiring Airbnb business owners in Mesa can make data-driven decisions that maximize their returns and minimize risk. With the tool's advanced analytics and financing partnerships, investors can confidently navigate the short-term rental market and build a profitable portfolio in this thriving desert city.

Ready to start your Airbnb journey in Mesa? Use BNBCalc to analyze potential properties and make informed investment decisions. Our powerful tool provides comprehensive data to help you maximize your profits. Check out this pre-analyzed Mesa Airbnb opportunity and see how BNBCalc can help you succeed in the short-term rental market. Visit BNBCalc.com today and take the first step towards building your Airbnb business.