Tempe is a compact college city in the East Valley of metro Phoenix, wrapped around Arizona State University and the reclaimed channel of the Salt River. Palm-lined streets run flat and straight across the desert floor, with Hayden Butte, the small peak locals call “A” Mountain, rising over downtown.
If you are moving to Tempe, the best neighborhoods in Tempe include Riverside for apartments near the water, Escalante for close-in living by campus, University Heights for light-rail access, Holdeman for older single-family homes, and Tempe Royal Estates for roomier lots down south. This guide breaks down five Tempe neighborhoods by housing stock, commute, price, and the tradeoffs between them. Rent levels, whether you want to walk or drive, and how close you need to be to ASU or the freeways will change what is available to you.
Quick Guide: Best neighborhoods in Tempe for…
- Riverside: Best for lakeside walks, rental apartments, and quick freeway access.
- Escalante: Best for campus proximity, older houses, and the most for-sale listings in this guide.
- University Heights: Best for light-rail commutes, walkable errands, and compact rentals.
- Holdeman: Best for affordable rent, modest single-family homes, and a close-in location.
- Tempe Royal Estates: Best for larger lots, quiet streets, and single-family houses in south Tempe.
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At a Glance: Choosing Where to Live in Tempe
- North by the water or south by the freeways. North Tempe hugs Tempe Town Lake and the Salt River, with apartment complexes and quick access to Loop 202. South Tempe trades the water for larger single-family lots near the US-60.
- Rent or buy. Central and north Tempe is mostly apartments, so many close-in neighborhoods have almost nothing for sale. Detached houses cluster in the older grids near downtown and the newer subdivisions to the south.
- Walk and ride, or drive everything. The Valley Metro light rail and the Tempe Streetcar cover Mill Avenue, downtown, and Apache Boulevard, so a few neighborhoods let you skip the car for campus and errands. Farther out, Tempe is a flat, car-first grid.
- Heat sets the priorities. Summers push past 110 degrees, so shade, covered parking, and a working air conditioner matter more than a few extra square feet.
Tempe neighborhood deep-dives
Riverside: Apartments along the Salt River
Riverside runs along the north edge of Tempe, where the Salt River channel and Tempe Town Lake define the land. Rio Salado Parkway carries traffic past the water, and the paved paths along the lake fill with runners and cyclists in the cooler months. Papago Park and its red sandstone buttes are a short drive northwest. This is one of the more apartment-heavy parts of Tempe, and it holds the most rental units of any neighborhood in this guide, about 126 as of June 2026, per Trulia data.
Getting around from Riverside depends on the car and the freeway. Loop 202, the Red Mountain Freeway, is minutes away and connects to downtown Phoenix and Sky Harbor Airport in a short hop. The Tempe Streetcar’s north end is close, near Rio Salado Parkway, and links the area to Mill Avenue and ASU without parking downtown. Surface streets like Scottsdale Road move quickly outside rush hour, so a daily commute here is manageable rather than a slog.
The homes here are mostly apartment and condo buildings, low- and mid-rise, many built to face the water or the pool courtyards common in the desert. Rentals dominate, and for-sale stock is thin, with the occasional two-bedroom condo coming up for sale. Covered parking and in-unit air conditioning are standard given the summers. Balconies and shared pools do the work that yards do elsewhere, since land is scarce this close to the river.
The Tradeoff: You get water views and fast freeway access, but you trade a single-family street for apartment density and very little to buy.
If Not Here, Then… Try Jen Tilly Terrace, another north Tempe pocket of rental apartments, where rents are higher but you stay close to the lake and the 202.
As of June 2026, based on Trulia data:
- Average rent (1BR Apartment): $1,200.
- Average rent (2BR Apartment): $1,437.
- Average list price (2BR Apartment): $319,499.
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Escalante: Close-in houses by campus
Escalante is east of downtown Tempe, a close-in grid near Rural Road, with Arizona State University a short bike ride to the northwest. The Escalante Community Center and its park anchor the neighborhood, with ballfields, a pool, and shaded picnic areas. Older single-family houses line the interior streets, and small apartment buildings fill in along the busier edges. It carries the most for-sale listings in this guide, roughly 19 as of June 2026, per Trulia data.
Getting around is easier here than in most of Tempe. The light rail runs at street level along Apache Boulevard nearby, with a straight shot to downtown Tempe, ASU, and on toward Phoenix or Mesa. US-60, the Superstition Freeway, is close for drivers heading into the wider East Valley. Most errands still involve a car, but campus and the light rail are genuinely walkable or bikeable from the interior streets, which is rare for Tempe.
Postwar single-family homes make up most of the housing, block-built ranch houses with carports or garages, plus a scattering of older apartment courts near Apache Boulevard. Lots are modest but real, with room for a citrus tree or a gravel yard out back. The typical three-bedroom house for sale has a lot of about 8,100 square feet, larger than the apartment-heavy pockets to the north, per Trulia data as of June 2026. Built in the 1950s and 1960s, these houses have lower ceilings and smaller rooms than newer south Tempe builds, but they buy you a location within reach of campus.
The Tradeoff: Close-in houses near ASU are within reach to buy, but the homes are older and smaller, and the busy edges carry traffic and noise.
If Not Here, Then… Try Broadmor, a quieter residential grid just south, where the streets are calmer but you give up some of Escalante’s walk-to-campus edge.
As of June 2026, based on Trulia data:
- Average rent (1BR Apartment): $1,499.
- Average rent (2BR Apartment): $1,699.
- Average list price (3BR House): $420,000.
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University Heights: Light-rail living next to ASU
University Heights runs along Apache Boulevard, directly southeast of the ASU campus. The light rail traces the boulevard, and riders step on and off at the stations here all day. Apache Boulevard itself is a wide, busy corridor of older strip retail, taco shops, and coffee counters. The blocks behind it are quieter, a low grid of small apartment buildings and older rentals within walking distance of campus.
This is one of the few Tempe neighborhoods where you can live well without a car. The light rail runs at street level and connects straight to downtown Tempe, downtown Phoenix, and Mesa, and the Tempe Streetcar ties into it near campus. Parking near ASU is tight and often permit-only, and the light rail and bike lanes cover most trips to campus and downtown. For drivers, Apache Boulevard and Rural Road feed quickly onto US-60 and Loop 101.
The homes are almost all rentals, small apartment buildings and older single-story units near the university. You find studios and one- and two-bedroom apartments, built in the 1960s and 1970s, with window or wall air conditioning and open parking rather than garages. As of June 2026, Trulia had about 29 rental units here and no homes listed for sale, per Trulia data, so this is a place to rent rather than buy. What you pay for is the location: a flat, walkable stretch beside the rail line with campus at the end of the block.
The Tradeoff: Car-free access to campus and the light rail comes with older, rental-only housing and a loud stretch of Apache Boulevard.
If Not Here, Then… Try Alegre Community, another apartment-heavy area near campus, where you keep the rental options but move a little off the busiest part of Apache Boulevard.
As of June 2026, based on Trulia data:
- Average rent (1BR Apartment): $1,250.
- Average rent (2BR Apartment): $1,300.
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Holdeman: Affordable older homes close to downtown
Holdeman is one of Tempe’s older neighborhoods, a close-in grid west of Mill Avenue and near Broadway Road, within reach of downtown and ASU. The streets are lined with small postwar houses, mature shade trees, and the occasional corner lot with a pickup and a boat. It is one of the more affordable parts of central Tempe, and the location keeps you near the action without downtown rents.
For drivers, Holdeman is well placed. Broadway Road and Mill Avenue lead straight into downtown, and the interchange where I-10 meets the US-60, known locally as the Broadway Curve, is close for trips across the valley. The light rail on Apache Boulevard is a short drive or bus ride northeast. This is more of a drive-first neighborhood than a walk-everywhere one, though downtown is close enough for a bike.
The homes are small single-family houses from the 1950s and 1960s, block construction with low rooflines and carports or single-car garages. The typical three-bedroom house has a lot of about 7,300 square feet, smaller than the newer south Tempe subdivisions, per Trulia data as of June 2026. Yards are compact and often xeriscaped with gravel and desert plants. The appeal is price and position, with some of the lower for-sale prices in central Tempe on lots close to campus and the freeways.
The Tradeoff: The address is affordable and close in, but the houses are small and older, and you trade walkability for a car-first location.
If Not Here, Then… Try Pepperwood, a quieter subdivision with similar single-family homes, where you gain calmer streets but lose Holdeman’s quick shot into downtown.
As of June 2026, based on Trulia data:
- Average rent (1BR Apartment): $1,069.
- Average rent (2BR Apartment): $1,222.
- Average list price (3BR House): $375,000.
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Tempe Royal Estates: Roomier lots in south Tempe
Tempe Royal Estates is a south Tempe neighborhood near Guadalupe Road and Kyrene Road, about ten minutes from downtown but a world away in feel. The streets are wide and quiet, curving through a subdivision of single-family houses rather than the straight grids up north. Kiwanis Park, with its lake, tennis courts, and recreation center, is nearby for weekend afternoons.
This is car country. The US-60, the Superstition Freeway, is the main artery, feeding west toward I-10 and Phoenix and east into Mesa and the far East Valley. There is no light rail down here, and errands mean driving, though the arterial roads move well and parking is never a problem. A downtown Tempe or ASU commute is a real drive, especially at rush hour.
These are single-family houses on larger lots than the close-in neighborhoods, with the typical three-bedroom on a lot of about 8,800 square feet, per Trulia data as of June 2026. Built in the 1970s and 1980s, they have attached garages, block walls around the backyard, and room for a pool. Ceilings are higher and floor plans more open than the postwar houses closer to campus. Mature landscaping and covered patios help with the summer heat.
The Tradeoff: A bigger house, lot, and garage come at the cost of a longer downtown commute and full reliance on the car.
If Not Here, Then… Try Kiwanis Park, wrapped around the park of the same name, where you keep the south Tempe space and greenery but see fewer homes come up for sale.
As of June 2026, based on Trulia data:
- Average rent (1BR Apartment): $1,604.
- Average rent (2BR Apartment): $1,759.
- Average list price (3BR House): $574,500.
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The Comparison Index
| Neighborhood | Avg Rent (1BR Apt) | Avg Rent (2BR Apt) | Avg Home Price | Type of Home | Walkability | Noise | Vibe |
|---|---|---|---|---|---|---|---|
| Riverside | $1,200 | $1,437 | $319,499 (2BR apartment) | Low- and mid-rise apartments and condos | Medium | Medium | Lakeside and apartment-dense |
| Escalante | $1,499 | $1,699 | $420,000 (3BR house) | Postwar single-family and older apartments | Medium | Medium | Close-in and near campus |
| University Heights | $1,250 | $1,300 | – | Older rental apartments | High | High | Light-rail corridor |
| Holdeman | $1,069 | $1,222 | $375,000 (3BR house) | Small postwar single-family | Medium | Medium | Older and residential |
| Tempe Royal Estates | $1,604 | $1,759 | $574,500 (3BR house) | Single-family houses on larger lots | Low | Low | Quiet and suburban |
How to Pick a Tempe Neighborhood
Start with whether you are renting or buying, because in Tempe that decision narrows the map fast. To buy a house, look at the close-in grids like Escalante and Holdeman and the south Tempe subdivisions like Tempe Royal Estates, where the single-family listings are. To rent, the apartment belts along the river in Riverside and beside the light rail in University Heights give you the most options.
Then weigh commute against space. The closer you are to ASU and the light rail, the smaller and older your home is likely to be, and the more you pay per square foot. Push south and you gain a garage, a yard, and a bigger floor plan, but you take on a longer drive and full dependence on the car. Riverside and Escalante land in the middle, close to downtown without the long south Tempe drive.
Prices cover a wide range. Rents start near $1,069 for a one-bedroom apartment in Holdeman and climb toward $1,759 for a two-bedroom in Tempe Royal Estates, while for-sale prices reach from about $319,499 for a condo in Riverside to $574,500 for a house down south, all as of June 2026 per Trulia data.
Finally, go walk the block at the time of day you would actually be home. The heat is the real test, so visit in the afternoon, not just on a mild morning, and check how far the nearest shade and grocery run really are.
Frequently Asked Questions
What is the average home price in Tempe, AZ?
As of June 2026, the average list price for a three-bedroom house in Tempe is about $524,000, per Trulia data. Prices vary by neighborhood, from around $375,000 for a three-bedroom house in Holdeman to about $574,500 for one in Tempe Royal Estates.
What is the average rent in Tempe, AZ?
The average rent in Tempe is about $1,450 for a one-bedroom apartment and $1,628 for a two-bedroom apartment, as of June 2026 per Trulia data. You can see current figures on the average rent in Tempe page. Rents are lower in older central neighborhoods like Holdeman and higher in south Tempe.
What are the most expensive neighborhoods in Tempe, AZ?
Tempe Royal Estates is the priciest in this guide, with three-bedroom houses listing around $574,500 and two-bedroom apartments renting near $1,759, as of June 2026 per Trulia data. Escalante follows, with three-bedroom houses around $420,000 and two-bedroom apartments near $1,699.
What are the most affordable neighborhoods in Tempe, AZ?
Holdeman is the most affordable here, with three-bedroom houses listing around $375,000 and one-bedroom apartments renting near $1,069, as of June 2026 per Trulia data. Riverside is close behind on the buy side, with two-bedroom condos listing around $319,499 and one-bedroom apartments near $1,200.
Is Tempe, AZ walkable?
Parts of it are. The Mill Avenue district, the ASU campus, and the Apache Boulevard corridor through University Heights are genuinely walkable and tied together by the light rail and the Tempe Streetcar. Most of the rest of Tempe, especially south of the US-60, is a flat, car-first grid where you drive for errands.
What is commuting like in Tempe, AZ?
Commuting depends on where you land. Neighborhoods along Apache Boulevard, like University Heights and Escalante, ride the Valley Metro light rail into downtown Tempe, downtown Phoenix, and Mesa. Riverside relies on Loop 202 and the nearby Sky Harbor Airport, while south Tempe areas like Tempe Royal Estates rely on the US-60 and I-10 and a car for nearly every trip.
