Tucson Q4 Market Report: Strengthening Jobs Outlook Supporting Apartment Fundamentals
Highlights:
- The Tucson multifamily market closed 2019 on an upswing, with local employers adding workers, rents rising, and the vacancy rate tightening.
- Vacancy dipped 10 basis points in the fourth quarter, ending the year at 5.5 percent. The rate fell 60 basis points from the end of 2018 to the close of 2019.
- Asking rents trended higher throughout 2019, ending the fourth quarter at $831 per month. Average rents rose 5.7 percent during the year.
- Investment activity slowed in the fourth quarter, and sales velocity in 2019 was down approximately 35 percent from 2018 levels. While fewer properties sold, prices pushed higher; the median price reached $74,800 per unit, while cap rates compressed to an average of 5.5 percent for the year.
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