There’s no other way of putting it: Tucson, Arizona is a boomtown right now. Tucson’s real estate market is thriving due to a variety of factors, including its climate and economy. The city has seen an influx of residents from other states who suddenly found themselves working from home and decided to take advantage of their newfound freedom to relocate. According to Roofstock.com, over the past six months alone, the median home price has increased by nearly $30,000 and risen by 14.8% year-over-year. “All the houses that are on the market, we are turning them over every single month,” Randy Rogers, CEO of the Tucson Association of Realtors, told KOLD News in August of 2020.
With a population of 550,000 in the city and just over one million residents in the metropolitan area, Tucson is a thriving, dynamic city with major employers in education, aerospace, biotech, defense, information technology, and international trade. On top of all that, thanks to the warm weather, Tucson residents can enjoy outdoor recreation throughout most of the year. These factors had already been drawing newcomers to Tucson prior to the pandemic. Over the past 10 years, Tucson has grown by about 5%, with a net migration of over 3,100 in 2018 alone. And despite the economic downturn, the University of Arizona Economic and Business Research Center forecasts nonfarm employment in the Tucson metropolitan area will grow by 3.4% in the year ahead. That growth is expected to continue at 1.4% per year between 2022 and 2024.
Real estate investors are reaping the benefits of Tucson’s surge in popularity. In 2020, the median home price in Tucson increased by nearly $30,000 and rose by 14.8% year-over-year. Houses in Tucson are selling for 99.8% of the listing price within only 20 days on market until sale, compared to 36 days for the same period last year. With very little inventory on the market, a lot of would-be homebuyers are renting, making the market very attractive for investors in search of rental properties. For those who still have concerns about finding long-term renters, Tucson is also an attractive destination to own an Airbnb. For cash-on-cash return, Tucson is ranked number one in the state of Arizona for Airbnb rentals. If you’re looking for a hot market, Tucson is definitely worth your consideration.