Cost of rent explodes in Tucson area

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TUCSON, Arizona (KOLD News 13) – Tucson rents rose 2% in June, according to Apartment List.

If you compare that with the last few years, you can see how quickly rents are rising in the Old Pueblo.

These numbers are provided by Apartment List

• June 2017: + 0.8% month-on-month
• June 2018: + 0.5%
• June 2019: + 0.5%
• June 2020: + 0.7%
• June 2021: + 2.0%

There are several reasons for the increase, not the least of which is the coronavirus pandemic.

For the first time, many high earners discovered that they could work remotely. That means they could work from home and it doesn’t matter where they live.

“We’re seeing high rates of migration among this group of people who haven’t moved that much before,” said Rob Warnock, a senior research fellow at Apartment List. “It’s not everything, but it sure does matter.”

Many are moving from high rental areas like Los Angeles, San Francisco, and even New York. They move away for a better climate, but middle-class cities like Tucson also offer quality of life at better prices.

This is not only putting pressure on the rental market, but also on the housing market. Property prices in Tucson have soared nearly 25% over the past year, bringing the average price to just under $ 300,000.

That means some may need to stay in rental apartments instead of buying a home right away.

“These higher-income individuals are being kept in the rental market longer than they otherwise would,” he said. “You can see how that would put rents under pressure if more people were competing for space.”

According to Warnock, the vacancy rate in Tucson is around 4%, which is less than half the normal rate.

Apartment List puts the average two-bedroom rental in Tucson at $ 1,189 a month.

That puts Tucson in the middle when it comes to cost, but Tucson is also a low-wage city, which weighs on affordability.

“We are seeing rent increases that are currently five to ten times faster than we are used to,” he said. “Tucson was a growing market long before the pandemic, but COVID has accelerated some of it, especially in the last six to twelve months.”

Copyright 2021 KOLD News 13. All rights reserved.

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