Tucson residents may soon be predominantly renters.
A combination of escalating home prices and a lifestyle choice are fueling occupancy in rental properties, from traditional apartments to single-family homes in rental-only communities.
The latter, known as built-to-rent developments, are experiencing significant growth in Pima County and some traditional homebuilders are now building housing projects just for renters.
Permits for new homes for sale are down more than 50% from last year.
Meanwhile, there are 10 built-to-rent, or BTR, projects underway locally with more than 1,650 homes.
โTheyโre definitely ramping up,โ said Jim Daniel, a local housing analyst. โIt caught our attention because theyโre single-family, detached.โ
He said developers of these communities have bought a lot of land in the last couple of years.
The latest data from the U.S. Census Bureau shows 51.3% of homes in Tucson are owner-occupied.
โI donโt think itโs speaking to the nature of Tucsonโs economy or the housing market,โ Daniel said. โYou are a university town, so you are going to have a higher percentage of rental units given that you have so many students.
โItโs just another option for people out there who donโt want to live in a traditional complex.โ
โMaintenance free,โ flexibility to move
In 2018, Jo Erath, 81, sold her home in Phoenix and moved into the BTR community, Avilla Marana, near Thornydale and Ina roads.
โThe house was too much upkeep,โ she said. โIโm comfortable here and itโs maintenance free.โ
Her backyard includes a patio and some artificial turf, Erath said.
She doesnโt consider renting to be throwing away money.
โThe thing is, if you take your money and put it in a good savings account, you can make good money,โ Erath said. โI just see lots of pluses of living in a rental and my children think itโs a wise decision because I donโt worry about maintenance.โ
Vince DeBlasi moved into BTR community Avilla Preserve, near Orange Grove and Mona Lisa roads, about three years ago.
โI wasnโt sure if I was going to stay in Tucson, but I looked around and liked these because itโs not a standard apartment and I donโt share common walls and I have a small yard,โ said DeBlasi, 52. โAnd I appreciate the flexibility that if I decide to leave, itโs easier.โ
He likes that the maintenance is included with the rent.
โIโve had appliances go out and it gets taken care of and I donโt have to worry about going out to buy a $2,000 refrigerator,โ DeBlasi said. โOf course, youโre not building equity, but youโre not out of pocket.
โRight now, it just kind of works.โ
Renters by choice are changing cities
Renters by choice have changed the makeup of more than 20 U.S. cities in the past decade, flipping them from majority homeowner to majority renter, a report by RentCafe shows.
Since 2010, the number of renters has increased by more than 9% while the number of homeowners increased 4.3% in that same period.
The share of renters makes up about 34% of the U.S. population, the report says.
The highest that percentage has ever been was in 1960 when 36% of Americans were tenants.
Should Tucson become a renter-majority city, business leaders say it wonโt have an impact on its image or ability to recruit new companies.
When looking to expand, companies are interested in the workforce and the availability of housing for that workforce, said Michael Guymon, president and CEO of the Tucson Metro Chamber.
โFrom our standpoint, weโre concerned with availability and affordability of housing,โ he said. โIโve never heard of an employer say, โWeโre concerned that there are not more homeowners.โโ
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