Tucson Q2 Multifamily Market Insights: Rent growth accelerates, even as vacancy pushes higher


  • The Tucson multifamily market showed signs of returning closer to stable performance in the second quarter, following a volatile past few years. Vacancy followed its historical trend of pushing higher during the summer months. Rents showed continued strength, rising nearly 3 percent in the past three months.
  • Apartment vacancies in Tucson trended higher for the third consecutive quarter, rising 90 basis points to 5.7 percent. In the past 12 months, vacancy has increased by 130 basis points.
  • The pace of rent growth accelerated in the second quarter. Rents advanced 2.9 percent to $1,159 per month in the second quarter, building on a 2.3 percent gain at the start of 2022. Year over year, the average rent in Tucson climbed 16.8 percent.
  • During the second quarter, the median sales price was $125,000 per unit, nearly identical to pricing in the first quarter. Transaction activity increased from the start of the year, and the average cap rate remained steady at about 4 percent.

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