In the lead up to Super Bowl LVII, thousands of homeowners in the Phoenix metropolitan area listed their properties on short-term rental websites, hoping to take advantage of the event’s potential payoff. As the big day approaches, these homeowners remain optimistic about securing last-minute bookings.

The Super Bowl, which will feature the Kansas City Chiefs and the Philadelphia Eagles at State Farm Stadium in Glendale, Arizona, has sold out its 73,000-person capacity. The same weekend will also host the Phoenix Open, the world’s best-attended golf tournament with an estimated 700,000 spectators, and spring training.

However, despite the simultaneous presence of two large sporting events in Phoenix, most short-term rental sites are barely reaching 50% occupancy. This has resulted in frustrated homeowners cutting prices and some small investors regretting their investment.

The short-term rental market in Phoenix is less restrictive than that in Los Angeles, where only primary residences can be rented out. In contrast, Arizona only requires a license to operate a vacation rental.

Recently, institutional real estate investors have targeted the Phoenix housing market, leading to increased rent prices, although economists remain uncertain about the cause.

Our data analysis found that over 30% of homes sold in the Phoenix market in Q3 of 2021 were purchased by investors, and the average rent has risen by 30% in the past year. One company, Invitation Homes, now owns over 8,700 homes in Phoenix.

The second quarter of 2022 saw 87,500 U.S. homes purchased by real estate investors, up 5.9% YoY. Investor market share remains higher than pre-pandemic levels at 19.4%, with many properties being bought by the 700 largest investors who own over 71,000 residential properties.

Despite these trends, there is a sense of disappointment among homeowners in Phoenix as only 51% of VRBO properties are booked, with a median rate of $450 per night. The lack of bookings can be attributed to free tickets and hotels, with the majority of Super Bowl tickets being bought by corporations for clients.

Super Bowl LVII

Super Bowl LVII is the 57th edition of the National Football League’s championship game. The Super Bowl is the annual American football game that determines the champion of the National Football League (NFL) for the given season. It is typically held on the first Sunday in February and is considered the biggest event in American sports, attracting millions of viewers from all over the world. The Super Bowl is also known for its halftime show and the high-profile advertisements that air during the broadcast.

The Super Bowl remains the most costly advertisement space on television, with 30 seconds of ad time during the broadcast of Super Bowl LVII between the Philadelphia Eagles and the Kansas City Chiefs sold for a maximum of $7 million, according to sources knowledgeable about the matter.

The CEO of Fox Corp, Lachlan Murdoch, stated on an analyst call that the Super Bowl and its surrounding coverage are anticipated to yield around $600 million in total ad revenue.

Although a small number of advertisers disbursed $7 million, the normal rate for an ad spot during the game is over $6 million, which varies based on the timing of the ad purchase, the amount of spots bought, and whether the advertiser is a repeat customer for Super Bowl commercials.

The ad prices are a stark contrast to the $42,000 spent by advertisers on ad time during the inaugural Super Bowl in 1967, a match between the Green Bay Packers and the Chiefs that was televised by NBC and CBS.

Unlike the previous year’s game, which was inundated with advertisements for cryptocurrency exchanges such as Coinbase,, eToro, and FTX, there will be minimal representation from this sector this time as the industry struggles.

According to a study by Aliff Capital, the average cost of attending the 2023 Super Bowl in Glendale, Arizona is around $9,000, while the average hotel rate in the city during the event is $740 per night, compared to last year’s rate of $225 per night. This increase in demand has resulted in a rise in the supply of short-term rentals in the area, including those in the suburbs, where vacation rental owners are seeking to take advantage of the situation.

In Glendale, the number of rentals available from October to December of 2022 rose by 129% compared to the previous year. The same trend can be seen across the entire Phoenix and Scottsdale area, with a 44% increase in the number of available listings during the same period.

However, the increase in short-term rental supply helps to regulate prices, as vacation rental owners who set prices too high may struggle to attract bookings. Moreover, big events can also lead to increased disruption, such as property damage, noise complaints, and safety concerns, which can affect both vacation rental owners and their local communities. At the same time, renters who are paying higher prices want to feel confident in the properties they are booking.

Leave a Reply