State: Arizona
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 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.
Tucson is also near Vail, famous for its skiing, and Marana, Arizona, known for its excellent climate and recreation.
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.
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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