Tucson is famous for its beautiful natural vistas and legendary year ‘round sunshine. However, there is another reason why Tucson is standing out and apart on the national scene: it home to a residential housing market that is quietly heating up and poised to sizzle in the latter half of 2019 and beyond. With favorable long-term prospects, Tucson has a population of approximately 500,000 and has seen a significant increase in median home sales. According to entrepreneur and real estate financing executive Chris Nero, the Founder and CEO of Capella Ltd. Invs Limited Liability Co., here are some key insights about the current state of the Tucson housing market:
· Demand for Housing is on the Rise
One of the biggest factors driving a hot housing market — or conversely, among the biggest causes of a cold housing market — is whether job creation is on the uptick, or if a growing number of unemployed individuals and families are pulling up stakes and heading elsewhere. While the job creation news isn’t great in some parts of the country such as Duluth, Minnesota and Grand Forks, North Dakota, it’s bright and sunny (much like the weather) in Tucson, as some big companies (most notably Amazon and Caterpillar) are poised to set up shop and put thousands of people to work.
According to Chris Nero, the Tucson unemployment rate is currently hovering at 4.4 percent, which is lower than the statewide rate of 5.1 percent. As more long-term job opportunities become available in Tucson, there will be an influx of buyers and especially renters.
· Affordability Remains Strong
Despite the current and expected increase in job opportunities, Tucson home prices remain remarkably affordable compared to other cities and states. According to data from Zillow, the median home price in Tucson is a very attractive $185,100, which is nearly 19 percent lower than the national median price of $222,800.
Chris Nero claims that young families and first-time buyers are finding that they can buy significantly more house in Tucson than they can in other parts of the Southwest. And while prices are expected to rise over the next year, they are not expected to surge out of control like we are seeing in areas like Phoenix, Las Vegas and Denver, where the year-over-year price increase is more than 5 percent; and in the case of Las Vegas in particular, is a staggering 12.8 percent.
· Prime Opportunity for Real Estate Investors
The combination of low median housing prices and a job creation boom in Tucson is creating an ideal situation for investors of all stripes, and especially those who are looking to generate rental income.
Comments Chris Nero: “Tucson also has about 600 properties that have been designated as distressed, and which are notably and, in some cases, significantly discounted. Many investors who are crowded out of the Phoenix market will be looking at Tucson in the latter half of 2019, and well into 2020.”