Greater Tucson Q3 Multifamily Market Report: Accelerating Job Growth Fueling Vacancy Declines, Rent Gains
Highlights:
- The Tucson multifamily market continued to gain momentum in the third quarter, with vacancies tightening and rents rising. The investment market strengthened in response to improving market conditions.
- Vacancy dipped 30 basis points to 5.6 percent in the third quarter, and the rate is down 40 basis points year over year.
- Asking rents rose 2 percent in the third quarter and are up 6.9 percent in the past 12 months. Current asking rents in Tucson are averaging $820 per month.
- Investment activity accelerated in the third quarter, while pricing was consistent. The median price has been approximately 75,000 per unit this far in 2019, while cap rates have averaged 5.8 percent in transactions that have closed year to date.
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