Tucson Multifamily Market Insights: Rents post modest quarterly increase, even as vacancy ticks higher

Highlights:

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• The Tucson multifamily market recorded mixed performance in the third quarter. Vacancy rose, but rents also trended higher. Absorption cooled despite continued growth in the local labor market. Fewer properties sold, but transactions closed at higher prices.
• Apartment vacancies increased for the fourth consecutive quarter. The rate rose 60 basis points during the third quarter, closing at 6.3 percent.
• Even as vacancies rose, rents still pushed higher. Rents reached $1,165 per month, 10.6 percent higher than one year ago. The pace of gains moderated in recent months.
• Transaction activity slowed somewhat in the third quarter, but sales volume to this point in 2022 has closely tracked levels from one year earlier. The bulk of the activity has occurred in larger transactions in recent months. The median sales price year to date has climbed to $142,500 per unit, up 26 percent from the 2021 median price.

Read the report.