Tucson Investment Property for Sale - 2023 Rental Home Appreciation
Tucson is situated on the edge of the scenic Sonoran Desert in Pima County in Southern Arizona. It's close to the Davis-Monthan Air Force Base and just a few hours from Phoenix. Real estate investors interested in Tucson real estate should consider Tucson's attractive housing market, the city's dedication to art and education, and the area's growth-oriented economy.
Tucson's Attractive Housing Market
Tucson's real estate market has been on an appreciation trend. As a result, Tucson's home prices showed a marked increase from the following year. New listings averaged around $218 per square foot.
Also, according to Realtor.com, single-family homes for sale outpaced rental properties on the market.
Many of Tucson's districts and neighborhoods reflect a reverence for the arts, culture, and higher education.
- Catalina Foothills: Located at the base of the Santa Catalina Mountains, the Catalina Foothills area mixes the beauty of nature with luxurious realty, shopping, eating, and entertainment.
- University of Arizona: The University of Arizona takes up over 300 acres in Tucson and is dubbed "Science City" for its excellence in astronomy, medicine, biology, and beyond. The area is open to the public and is a mini-city in its own right, with a shopping center, restaurants, and museums.
- Oro Valley: Artistic expression holds sway in Oro Valley. In addition to public art installations, galleries, and cultural museums, Oro Valley hosts the Spring Festival of the Arts, one of the region's largest festivals.
- Sam Hughes: The Sam Hughes Neighborhood is one of the oldest neighborhoods in Tucson and is within walking distance of downtown Tucson. The neighborhood focuses on preserving the community environment and improving the area's walkability. Along with Casas Adobes, Sam Hughes is a popular place to live in Tucson.
- Nogales, Arizona: Adjacent to Mexico, Nogales has excellent restaurants, deep historical roots, and a close relationship with its sister city Nogales, Sorona. Nogales is 60 miles south of Tucson.
Tucson is also near Vail, famous for its skiing, and Marana, Arizona, known for its excellent climate and recreation.
Rental Home Appreciation in Tucson
Tucson has many features that make it alluring to short-term and long-term renters. Its proximity to Vail, the beauty of its natural features, and the outdoor-activity-rich culture draw in tourists and health-conscious newcomers.
As a result, single-family and multifamily rentals saw a steady increase in rental rates over the past year, with renters seeking suitable places to live in a competitive market. The positive population trends and the emphasis on arts, culture, and education might be enough to make anyone wish for a real estate investment property in Tucson.
However, it's essential to dig deeper and find the reasons for such appreciation before making any property investment. Job growth, variety, and diversity are all critical factors that lead to economic growth, which sustains property appreciation.
Economic Growth in Tucson
The primary drivers of Tucson's economy are the aerospace, defense, optics, astronomy, and medical industries. Much of this is made possible by the University of Arizona, Tucson's top employer, and the Davis-Montham Air Force Base.
Raytheon Missile Systems is the second largest employer in Tucson. Along with Walmart and Freeport-McMoRan Copper & Gold, it is one of only three major private, for-profit businesses in the top ten employers in Tucson.
Other employers are the State of Arizona, the U.S. Border Patrol, Tucson Unified School District, the Tohono O'odham Nation, and several large healthcare providers.
Furthermore, Tucson is adapting to modern technologies by becoming a leader in renewable energy, particularly solar. The area's important companies and the job diversity within those industries have kept the city's unemployment rate low (between 2.9-3.6%) since October 2021.
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