I recently evaluated the Tucson residential rental market from January 2014 through June 2014 using Tucson Association of Realtors Multiple Listing Service (MLS) statistics. Although not all rentals are captured in the MLS, it is fair to say that the data captured is a representative sample.
Single Family Homes
Using the MLS statistics, from January 1st through June 30th of 2014, 1,509 single family houses were rented in the N, NW, NE, S, SW, SE, E, W and C areas as defined by MLS. Based on that, the average rental rate was $1,217 per month and the median rental rate was $1,100 per month. The average days on market was 53 days and the median days on market was 37 days.
Using the MLS statistics for the same time period and areas, I also looked at townhomes. In the first 6 months of this year, 202 townhomes were rented. The average rental rate was $996 per month and the median was $900 per month. The average days on market was 60 days and the median days on market was 41 days.
Using the MLS statistics for the same time period and areas, the last category I looked at was condos. In the first 6 months, 173 condos were rented. The average rental rate was $877 per month and the median was $795 per month. The average days on the market was 84 days and the median days on market was 48 days.
For single family homes, townhomes and condos, the 2014 average and median rental rates so far this year have decreased slightly from 2013. The 2014 average and median days on market have increased slightly from the 2013 numbers. As is the case historically, the Tucson rental rates for single family homes, townhomes and condos remain relatively flat.
The average and median days on market is an important factor to consider. This is because even when a property is priced correctly, it can take from one to two months to get it rented and occupied. In the rental business, time is money. Not just because of lost rent or mortgage payments that are not counter balanced by rent coming in, but the risk of vandalism, yard care expenses and utility bills are also real costs of vacancy. The more competitively priced the home is, the more quickly it will rent.
If you or someone you know has a rental house or are considering purchasing a rental house, this information should help you make good decisions and provide a quick point of reference regarding the Tucson rental market.