Tucson Q1 Multifamily Market Report: With Vacancies Tight, Rents Posting Sharp Increases
Highlights:
- Vacancies in the Tucson multifamily market remained at historically low levels in the first quarter, supporting rapid rent growth and prompting new development. Investors are responding to the strengthening market conditions by pushing per-unit sales prices higher.
- After vacancy dipped to a 25-year low at the end of last year, the rate held steady at 4.3 percent in the first quarter. Year over year, vacancy in Tucson is down 90 basis points.
- Asking rents continued their upward surge to start 2021, finishing the first quarter at $914 per month. Local rents have spiked 8.9 percent in the past year.
- After a very steady level of activity in 2020, sales velocity dipped approximately 12 percent to start this year. Despite a modest dip in activity, the median price advanced from levels recorded in 2020, and cap rates held steady.
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