Condominiums are making a comeback in the Tucson market.
As the prices of single-family homes continues to soar, along with homeowners’ equity, people are turning to condos as alternatives or investments.
One project in the Foothills that will put 132 units on the market within the next two years looks to fetch $319,000 for a two-bedroom, 1,074-square-foot condo. A one-bedroom, 765-square-foot model will start at $253,900.
Meanwhile, the average new home price in the Tucson area stands at nearly $430,000 and the average resale home price is $360,000.
Creating condos in Tucson was of high interest in 2005, 2006 and 2007 when the housing market was hot.
Several projects, predominantly downtown, were in varying stages of development when the housing crash brought most of them to a halt.
Data from the Tucson Association of Realtors shows the average sales price for condos and town homes climbed more than 27% in 2021 to $241,692 versus $189,752 in 2020.
Currently, the availability of condos up for sale is less than a month’s worth of inventory.
The Placita Escondida project near River Road and Campbell Avenue, behind St. Philip’s Plaza, involves the renovation of a 72-unit condo complex with plans to add 60 more.
“Our company is a group of Tucson natives, and we wanted to get some more living space in that area with the shopping, restaurants and riverwalk,” said John Jackson, a broker with the project’s developer, Andy Courtney Properties. “We also wanted to create something affordable for that area, at the base of the Foothills.”
The monthly HOA will be $225 a month when the project is built out.
“There are not a lot of condominiums in the Tucson area,” Jackson said.
The first 24 units completed at Placita Escondida Condominiums have sold out. A total of 132 are expected to be completed within two years.
Records from the city of Tucson commercial plans report the developers are investing about $15,000 in each of the renovated units.
More condos likely
Demand for all types of housing is high, and so is interest in second homes or investment homes, said Randy Rogers, president of the Tucson Association of Realtors.
“With all this equity in homes, people are looking to diversify their income and buy a rental property or second home, and Tucson is so desirable,” he said.
Winter visitors are also attracted to condominiums, and the Placita Escondida project is proof of that — the first 24 units that were finished are sold out.
“There’s a tremendous opportunity for builders,” Rogers said. “I think we’re going to see more condos come online.”
He said there is a buzz about trying to get more owner-occupied dwellings downtown, as most new developments are predominantly rentals.
Data from the Tucson Association of Realtors shows the average sales price for condos and town homes climbed more than 27% in 2021.
Monthly rent in new complexes downtown are up in the $3,000-to-$4,000 range.
Rogers said income like that will likely spur some condo development in downtown Tucson in the near future.
Aerial photos of Tucson, Pima County, in 1980
Swan Road and Sunrise Drive in February, 1980. The new Safeway Plaza is bottom right. Catty-corner from the Safeway, a Burger King restaurant is under construction. Across the street, land bladed for a Valley National Bank (now Chase Bank), a restaurant, retail and apartments. The old Rural Metro fire station is behind the street mall at top right.
Oracle Road (left to right) and Ina Road in February, 1980. There were gas stations on three corners of the intersection. All have been demolished. The venerable Casas Adobes Plaza is lower right, now anchored by Whole Foods. The open land at upper right is now the Safeway Plaza. The bank on the corner is still there, but the existing buildings to the right were demolished to make way for parking for the new plaza. Lower left is the property for the Haunted Bookshop, now Tohono Chul Park.
Oracle Road and Magee Road north of Tucson in February, 1980. Plaza Escondida is at right, now anchored by Trader Joe's. The open land at bottom of the photos is now the large retail plaza anchored by Kohl's, Sprouts and Summit Hut. The Circle K (sitting alone, upper left) is now a ballroom dance studio. Note the new asphalt on Oracle Road. In 1977, the state approved a project to widen Oracle Road (a state highway) to six lanes from Ina to Calle Concordia. That may be the last time the road was paved.
Tucson Medical Center in February, 1980. The intersection of Grant and Craycroft roads is at bottom left.
O'Reilly Chevrolet (cluster of cars), then Park Mall (center left) and Broadway Road in February, 1980. The open land at top left is now Williams Centre.
The FICO pecan orchards, bisected by South Nogales Highway, looking north to Sahuarita Road in February, 1980.
Tanque Verde Road (bottom left to upper left) and Wrightstown Road in February, 1980, before the City of Tucson constructed the grade-separated interchange. The first units of the Tanque Verde Apartments are lower left. The Circle K facing Wrightstown at the intersection is now Pair-A-Dice Barbers. The large parking lot and building to the left of the Circle K was the O.K. Corral Steakhouse, which was established in 1968. It closed in 2008. It's now Borderlands Trading Company.
Corona de Tucson Baptist Church, lower right, on Houghton Road south of Sahuarita Road in February, 1980. With exception of some infill housing and a few more trees, the neighborhood looks pretty much the same.
IBM (International Business Machines) on south Rita Road, looking north to the Santa Catalina Mountains in February, 1980. In 1988, IBM began phasing out data storage products manufacturing in Tucson, resulting in the loss of nearly 2,800 workers in Tucson, part of a $600 million consolidation plan.
Tucson National Golf Course north of Tucson, looking south, in February, 1980. The Cañada del Oro Wash is at left. Magee Road goes left to right at the top of the photo. Shannon Road curves to the left at top of the photo. That open land is now home to Pima Community College and the YMCA.
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