Like Tucson Real Estate commentators, analysts of the overall Arizona Real Estate scene arrive at conclusions derived from relatively rigid criteria. Such self-styled “statisticians” rely upon home prices, sales activity, and local tax revenues.
“Garbage in, garbage out” (“GIGO”) is an oft-cited axiom on computer instructional circuits. As the idiom insinuates, valid results depend upon full accounting of all factors and variables. Although continuously compiled and tediously tallied, rental market data are rarely found in market experts’ “equations.”
A recent news article revealed some fascinating statistical findings of Axiometrics, a major corporate player in the realm of applied research. Per a nationwide study, rents increased by an average of nearly 5 percent over the prior year. An Axiometrics spokesman posited this sign as portending continuing upward mobility for rental rates.
On the home front
Phoenix Real Estate rental rates had a huge increase of 10.1 percent. This placed our state’s capital among the 60 US submarkets with rental rate rises significantly above the national average. Likewise, Tucson Real Estate Rentals topped the charts — albeit at a lower spot — with a 1.85 increase. Not surprisingly, increased occupancy levels occurred in tandem with higher rents.
What does all this mean?
The coincidental convergence of higher rents, fuller apartments, and decreased home prices predict only one valid outcome. When the external variables of recent economic depression, high REO composition, and rising interest rates are factored in — the bottom line is clear. Rents have risen in response to increased housing demand spurred by the cacophony of current economic conditions.
It is high time for would-be homeowners to heed the message and ride the rapidly-receding wave of reduced prices of Tucson Homes for Sale. For investors, the message is equally obvious: get while the getting is good. Much like the childhood cavort of musical chairs, relative participant positions in the Tucson, AZ realty market go round and round — until the song ends.
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- Tucson Real Estate: Housing market drags down value of luxury lots