Tucson 4Q23 Multifamily Market Insights Report: Investment activity limited to Class C properties

Highlights:

• Multifamily property performance in the Tucson market softened during the fourth quarter, as vacancy rose and rents decreased. Developers delivered a cyclical high of completions in 2023, with 2,000 units coming online.
• The vacancy rate rose 30 basis points in the final three months of 2023 to 8.2%. Year over year, vacancy is up 80 basis points.
• Average rents posted gains in the first nine months of the year before inching lower in the fourth quarter. Despite the recent decline, rents in Tucson advanced 2.6% in 2023, finishing the year at $1,187 per month.
• Transaction activity remained limited in the fourth quarter, tracking trends that prevailed throughout much of the year. The total sales transactions were down 77% from the previous year. The median price was $125,400 per unit in 2023.

Read the report, or engage with our Phoenix office to learn more.