Tucson Q2 Multifamily Market Report: Vacancy Holds Steady, Rents Rise at Mid-Year
Highlights:
- The Tucson multifamily market recorded its strongest second quarter in approximately 10 years. Vacancy is low and rents are rising, supporting new development and rising property sales prices. As construction accelerates in the second half, there could be some leveling off of market fundamentals.
- Vacancy in Tucson was 5.9 percent in the second quarter, holding steady during a period where the rate typically pushes higher. The current vacancy figure is 40 basis points lower than the rate one year ago.
- Asking rents reached $804 per month, a 7.1 percent year-over-year increase. The increase from the first quarter to the second quarter was 1.3 percent.
- Prices pushed higher and more apartment properties sold during the second quarter, but activity levels continued to trail year-earlier volume. The median price thus far in 2019 is up to approximately $74,800 per unit, while the average cap rate is a tick under 6 percent.
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