1650 E. River Road
Why The Tucson Real Estate Market Will Keep Growing
Most people who currently live in Tucson already understand why it is a high growth area. A world-class climate, low housing costs, an amazingly diverse and strong economy, and very scenic and varied natural surroundings make Tucson, Arizona, a destination spot for many. Retirees come here in droves to escape the cold weather of northern cities. The University of Arizona brings in a large number of students annually, many of whom decide to stay and live in Tucson indefinitely. The University of Arizona also attracts local and national investment dollars for research and development businesses that spring from it.
The Tucson, Arizona, real estate market prices have been in decline for the past few years. However, once inventories decline, look for the market to make a rapid rally as the pent-up demand will show itself and make the market advance.
Tucson’s median home price is roughly 215k, which is about the national average. But considering Tucson’s superiority in terms of climate, economy, and livability to the rest of the country, the 215k median seems not only very reasonable, but low.
Here’s another plus for Tucson. While not entirely immune from natural disasters, Tucson has a very low probability of earthquakes, hurricanes, or tornadoes. Every time there is a natural disaster in another part of the U.S., I get a number of calls from people in that area who have made a decision to move. Since Tucson does not really see any natural disasters, this is where they move to.
Take a look at Tucson’s population over the past 50 years to get an even better understanding of what’s happening here. In the 1940’s and early 1950’s, Tucson’s population hovered around 50k people. Currently (2007), over 1,000,000 call Tucson home. Projections call for in excess of 1.5 million people to live in Tucson by 2030. That’s a 50% increase from today! Looking at these numbers, it does not take a genius to realize all these people must live somewhere and prices will only trend one way with this type of demand (UP!). People will have to move further and further out to obtain affordable housing in Tucson, making the areas currently lived in even higher demand. My recommendation would be for buyers to take advantage of the current downturn and buy and hold properties in high demand locations.