The following column is the opinion and analysis of the writer.
Tucson’s real estate market is thriving, and no one knows this better than those of us who call it home. The city has seen a positive shift in the market that appears to be attracting investors and families alike — and there are several reasons why.
The job market is growing
One of the best reasons to invest in Tucson’s real estate market right now is due to the thriving job market. The unemployment rate in Tucson is sitting at 4.7%, which is largely the result of a city-wide campaign that announced thousands of new jobs. In addition, Tucson is the second largest city in Arizona, making it an attractive metropolis for companies looking to expand.
It’s also home to multiple governmental agencies, including the U.S. Customs and Border Protection division, which alone employs thousands of people in the Tucson area. A city’s job market should be a key factor when it comes to deciding whether to invest in real estate. With Tucson’s steadily growing economy and job market, investors feel confident in both short, and long-term real estate investments in the area.
The demand is staying strong
As with most economic markets, it’s all about supply and demand. For investors, it is beneficial when the demand exceeds the supply, which is exactly the case in Tucson. Tucson’s economy is growing and there are more jobs than ever before, which attracts more people. The result? A rapidly growing population in need of housing that currently doesn’t exist. There is a lack of new construction in the city, which has led to a high demand for quality rental housing.
The region’s real estate market is benefiting from this trend.
While other cities are currently trying to grapple with an oversupply of housing, Tucson is enjoying the opposite — this strong demand is a pattern that economists project to continue for many years.
The prices of homes are rising
This past year, property prices have risen in most American cities. Tucson is no exception, so it likely won’t come as a surprise that this trend of increased home prices is set to continue in 2020. The increasing demand for homes coupled with the low supply of homes in Tucson means that it’s a seller’s market, which real estate investors will be excited to hear.
While home prices are rising in the city, homes are still affordable, which is key when it comes to investing. The median price of a home sold in Tucson is $205,900, which is below the national average of $235,500, but still affordable for an investor looking to buy property.
Arizona is landlord-friendly
Yet another reason to invest in Tucson’s real estate market is the fact that Arizona is a landlord-friendly state.
For example, there is no rent control per state law, meaning landlords in Arizona can charge whatever they want for rent. Further, landlords have lots of power when it comes to evicting tenants. They have the right to evict tenants in a variety of circumstances, including failure to pay rent, violating the rental agreement, or failure to maintain the property. Thanks to these laws, Tucson provides an attractive investment opportunity for real estate investors looking to rent out their property.
