Occupancy and Rent Growth Haven’t Been This Low in Tucson Since 2015
Apartment rent growth and occupancy are at eight-year lows in Tucson. Though only about a fifth of the size and some 110 miles away, apartment fundamentals in the small market of Tucson have approximately tracked that of Phoenix in recent years. And as Phoenix fundamentals cooled considerably in 2022, so too did Tucson’s performance – after surging in 2021. Halfway through 2023, Tucson occupancy (92.7%) hit its lowest level since December 2015, according to June data from RealPage Market Analytics. Annual effective asking rent growth in Tucson improved marginally in June (0.8%) from it’s weak May reading (0.5%), but collectively these two soft showings make up the lowest rent growth in Tucson since February 2015. In Phoenix, meanwhile, occupancy is at a nine-year low (92.8% as of June 2023) and annual rent change (-4.7% as of June 2023) is at a 13-year low.