TUCSON (KVOA) – As houses continue to rise, so do the price tags. Experts say the trend we’re seeing in our state could continue until the end of the year.
Housing in southern Arizona is up roughly 22% this year, and the median rent is up 12.6%. Tucson issued 5,000 building permits in 2020 and is expected to meet or exceed them this year. So will #housing continue to rise? These replies tonight at 6:00 p.m. on @KVOA pic.twitter.com/LYesYdhfIA
– Denelle Confair (@DenelleConfair) May 19, 2021
“They know we took advantage of the pricing and were able to sell our house and afford to run down,” said Keith Allen.
Keith Allen and his wife moved from Idaho to a new building in Marana.
Their new home cost them around $ 389,000 and they were able to sell their larger Idaho home for $ 739,000.
“We’d sit around and say, you know, if we had a desert home, we would,” Allen said. “As for outdoor life and all that, we decided to look around in March.”
He is not alone. In Arizona there is an increase in those migrating to our state for more affordable housing.
As demand increases, so does the price.
“The median retail price here in Tucson as of April this year was just over $ 300,000,” said George Hammond, UArizona business research director. “And that’s up about 22 percent over the year, so that’s really a lot of house price growth here in Tucson, and we’re seeing similar trends across the state.
The rental prices have also increased by 12.6 percent compared to the previous year.
Can builders working on overdrive keep up with demand?
Marcos Ysmael, Pima County Housing Program Manager, says they are working on just that.
“We are working to fund an affordable development that will convert a former hotel property into affordable rental units,” said Ysmael.
If you are looking to buy a home in the next year and are discouraged by the lack of homes or the price, experts say it can only be temporary.
“I think the situation will improve a bit and we are seeing income growth gradually picking up,” said Hammond. “And in the longer term, creating a solid foundation that will help make it affordable.”
Tucson issued 5,000 building permits in 2020, according to Hammond. This is the highest number of approvals since 2007. He predicts a similar number of approvals in 2021.