Hot housing market playing into Tucson’s skyrocketing rent prices
TUCSON, Ariz. (KOLD News 13) - Rent prices are skyrocketing in Tucson and experts say it’s a variety of factors have made it the perfect storm.
“Will it rise as much as it did in 2021? That’s hard to say. 2021 was probably the most rent growth that has ever happened here in the United States,” said Jeff Andrews, a data journalist at Zumper.
Andrews is a data journalist for Zumper a company that tracks rental market trends. The company says the median rent for a 2-bedroom in Tucson is up 21 percent year-over-year.
“The percentage increase and how quickly it has gone up I think is taking everyone by surprise,” said Randy Rogers, the CEO of the Tucson Association of Realtors.
The hot housing market has played a major role in the uptick.
“As home prices rise it prices out more and more renters who aren’t able to afford home ownership,” Andrews said.
It’s putting renters in a tough spot. The state of Arizona doesn’t have a law to limit how much a landlord can raise rent for a new lease or new rental. The limited inventory of properties is also a factor
“We were already suffering from a housing shortage and then the pandemic super charged demand both on the sale side and on the rental side,” Andrews said.
Rogers said the issue is happening nationwide. Tucson might be feeling it more than other cities especially with a trickle down effect from Phoenix.
“They go ‘wow it’s pretty busy, a big city’ and look south and see Tucson realizing how fantastic it is here,” Rogers said.
As of now, he said it’s hard to predict when rental prices will level out.
“It’s that crystal ball. I wish I had the answer. Every economist right now says the 2022 housing market will balance just a little bit,” Rogers said.
A new bill was proposed Wednesday to help Arizona’s housing crisis. The law would increase the supply of low income units and set aside $89 million to help house the growing homeless population.
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