Investing in the Tucson Housing Market: Is It Worth It?
Tucson, Arizona is a vibrant city located in the Sonoran Desert. Known for its rich cultural heritage, the city has become an attractive destination for people looking for a comfortable lifestyle in the sun. One of the key factors that determine a comfortable lifestyle is housing, and in Tucson, the real estate market has been witnessing a healthy growth in the past few years. In this article, we’ll take a look at some of the trends in the housing prices in Tucson and whether investing in a property in the city is worth it.
Overview of the Tucson Housing Market
The real estate market in Tucson has been experiencing a positive trend in recent years. According to statistics from Zillow, the median home value in Tucson as of August 2021 was $272,524, an increase of 12.6% over the past year. In comparison, the national average increase in home values over the same period was 13.2%, indicating that the Tucson market is keeping pace with the national trend. Furthermore, the projected increase in home values over the next year is expected to be around 7.6%, indicating that the market will continue to grow in the medium term.
An important factor contributing to this growth has been the influx of people moving into the city. Tucson has been attracting a diverse range of people over the past decade. From young professionals to retirees, and from families to foreign students, the city offers a wide range of amenities that cater to different lifestyles. In addition to the vibrant arts scene, Tucson offers numerous education opportunities, excellent healthcare facilities, and a temperate climate that is ideal for outdoor activities. This diversity in demand has resulted in a varied mix of properties being available, from apartments and townhouses to single-family homes and luxury estates.
Tucson Housing Inventory and Supply
Despite the growth in demand, the housing inventory in Tucson has remained relatively stable. As of August 2021, there are approximately 2,819 homes for sale in Tucson, indicating that supply is not keeping up with demand. This has resulted in higher prices as buyers compete for limited properties. However, this trend is expected to change as more new properties are expected to be built, which will help to alleviate the shortage of available properties. In the meantime, the higher prices have created significant opportunities for investors looking to make healthy profits in the short term.
Reasons to Consider Buying Property in Tucson
There are many reasons why buying property in Tucson can be an attractive option for investors. Firstly, the city has a growing economy with a healthy job market. Tucson is home to major employers such as Raytheon, University of Arizona, and Tucson Medical Center, providing a stable source of employment for its residents. Additionally, the city is undergoing significant investment in infrastructure, particularly in its downtown area. This development is attracting new businesses, creating job opportunities, and increasing the value of nearby properties.
Secondly, Tucson is a popular tourist destination, which can make buying a property a worthwhile investment. The city has excellent outdoor recreation facilities, such as hiking and biking trails, parks, and golf courses, which attract a steady stream of visitors throughout the year. In addition, the city has a rich cultural heritage, with museums, galleries, and music events that offer a unique visitor experience. This combination of natural beauty and cultural diversity has resulted in Tucson being listed in various tourism guides, such as Trip Advisor’s “Top Destination” list and Airbnb’s “Most Wish Listed Destinations” list.
Finally, buying a property in Tucson can offer a sound return on investment. The steady growth in housing prices is creating equity for homeowners, while the high demand for rental properties is creating a profitable rental market for investors. According to RentCafe, the average rent for an apartment in Tucson is $1,105 per month, an increase of 3% over the past year. Furthermore, the vacancy rate for rental properties in Tucson is low, indicating that there is a strong demand for rentals in the city. This combination of higher rents and low vacancy rates creates a profitable investment opportunity, particularly for investors who are looking for a stable long-term investment.
Tucson is a city that offers a range of opportunities for those looking to invest in the housing market. The city’s stable growth, attractive climate, and growing economy make it an attractive option for investors looking for a long-term investment. Additionally, the high demand for rental properties and the steady growth in housing prices create a profitable short-term investment opportunity. However, as with any investment, there are risks involved, and potential investors should seek expert advice before making a decision. Nevertheless, it is clear that investing in a property in Tucson can be a smart move for those looking for a solid return on investment.