Tucson Q3 Multifamily Market Report: Vacancy Tightens, Rents Spike in the Third Quarter
Highlights:
- The Tucson multifamily market posted one of the most statistically sound quarters on record as rents spiked and vacancy fell significantly in the third quarter. These trends were likely more a result of pent-up demand than a market shift.
- Vacancy fell 80 basis points in the third quarter, reaching 4.5 percent; the rate is down 110 basis points year over year.
- After holding steady in the second quarter, rents surged in the third quarter, rising 3.3 percent to $867 per month. Year over year, asking rents are up 5.7 percent.
- The Tucson multifamily market has recorded very steady investment performance through the first three quarters of 2020. Transaction activity has occurred at a consistent pace, the median price year to date is $65,500 per unit, and cap rates have averaged approximately 5.8 percent.
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