Tucson faces problems due to housing costs

Currently, the construction sector in the city of Tucson, Arizona is in full swing, focusing on the development of multiple housing complexes. However, according to official statements, this activity is much less than in previous years.

Given the volume of construction, it is clear that the housing market in the city of Tucson is fully equipped to meet the population’s demand, but the downside is that indicators show that the current housing prices are high enough to be unaffordable for the majority, and it seems these prices will not decrease.

According to official figures, compared to the previous year, more than half of the construction permits requested from the administration for the development of new housing have been approved this year.

Due to increases in interest rates that make it more difficult to maintain a mortgage, many homeowners are reluctant to sell their properties for fear of not being able to handle a high loan. As a result, resale properties are stalled, and the new trend among buyers is the acquisition of new properties.

Real estate market indicators in Tucson suggest that the administration could continue receiving many more requests for permits to build new housing, as the need for housing remains strong despite the high interest rates in the city.

Although construction materials, interest rates, and high insurance costs now make it more difficult for builders and investors to develop new properties, housing projects that will provide greater coverage for the city’s high demand are frequently approved.

Arizona market analysts perceive that the current market has very good mobility and note that all individuals and organizations involved in the housing sector have effectively managed the challenges posed by changes in interest rates and high construction costs, particularly in the Pinal and Pima areas of the state.

Regarding housing prices, it is evident that today the costs of housing are almost double what they were years ago. In terms of supply and demand managed by the city, the supply is larger despite the fluctuation of rates and changes in other factors that affect the real estate market movement.

Previous studies indicated that one of the effects of the pandemic was a massive drop in housing demand across the United States; however, this situation fortunately did not occur in the city of Tucson.

Available foreclosures:

Tucson: 150 homes available.

Pima County: 75 homes available.

Pinal County: 50 homes available.

By Elias DaSilva | October 9, 2024.