It’s hard to believe that yet another year has passed! But as you are contemplating your resolutions and goals for the upcoming year which may include investing in a rental house or two, I thought it would be beneficial to take a look at the past year’s rental statistics.
I have evaluated the Tucson residential rental market from January 2014 through December 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, 2014 through December 31st, 2014, 3,111 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 $1,222 per month and the median rental rate was $1,100 per month. The average days on market was 51 days and the median days on market was 39 days.
Using the MLS statistics for the same time period and areas, I also looked at townhomes. In 2014, 399 townhomes were rented. The average rental rate was $974 per month and the median rental rate was $925 per month. The average days on market was 53 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 2014, 350 condos were rented. The average rental rate was $811 per month and the median rental rate was $795 per month. The average days on the market was 58 days and the median days on market was 44 days.
As is the case historically, the Tucson rental rates for single family homes, townhomes and condos remain very flat. The median rental rates in 2014 for single family homes, $1,100, and for condos, $795, are exactly the same as 2013. The median rental rate for townhomes in 2014 rose slightly, from $895 in 2013, to $925 in 2014.
The average and median days on market is an important factor to keep in mind. 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.