There’s no other way of putting it: Tucson, Arizona is a boomtown right now, and its multifamily market is thriving because of it.
Greater Tucson has been attracting new residents in droves for the past decade, but that influx skyrocketed once millions of people were suddenly working from home, with the newfound freedom to relocate. Many chose Tucson for its affordability and great weather. They could have also been influenced by the city’s reputation, which has been steadily on the rise. According to US News, Tucson ranks amongst the nations 100 best places in the country to live and retire.
With a population of 550,000 in the city and just over one million in the overall metropolitan area, Tucson is thriving with major employers in education, aerospace, biotech, defense, information technology, e-commerce and international trade. As of Q2 2022, Tucson’s jobs were up more than 3 percent year-over-year, to 389,100, which includes growth from the area’s booming e-commerce and logistics sectors.
On top of all that, thanks to the warm weather, Tucson residents can enjoy outdoor recreation throughout most of the year.
Demand from new residents has helped to drive Tucson single-family home prices up 25.1 percent between April 2021 and April 2022, representing a median sales price of $343,000.
This all bodes extremely well for Tucson’s multifamily market, and supports MC’s focus here – both when it comes to building new communities and buying and renovating existing apartment complexes.
MC Companies currently owns 12 multifamily communities in Tucson and is building another, The Place at Silverbell Gateway. Each of these assets offers Tucson residents comfortable, welcoming rental options that are meticulously maintained by our MC Residential property management teams. It is an attractive alternative for many who are facing Tucson’s high-price, low-inventory single-family home market.
This demand is good news as an owner and investor. So is Tucson’s rising multifamily asking rents, which as of March 2022 had increased by 21.7 percent year-over-year. While this jump may represent somewhat of a pandemic-induced anomaly, local multifamily rents are none-the-less increasing – to the tune of 2.3 percent during the first quarter of 2022 alone.
For investors seeking long-term holds, following the MC Companies investment model, Tucson is the place to be not only now, but for the extended future.