I have just evaluated the Tucson residential rental market from January 2015 through June 2015 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, 2015 through June 30th, 2015, 1,489 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 52 days and the median days on market was 38 days. All these numbers are nearly identical to the 2014 numbers.
Using the MLS statistics for the same time period and areas, I also looked at townhomes. So far in 2015, 202 townhomes were rented. The average rental rate was $967 per month and the median rental rate was $950 per month. The average days on market was 57 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. So far in 2015, 187 condos were rented. The average rental rate was $816 per month and the median rental rate was $795 per month. The average days on the market was 70 days and the median days on market was 50 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 2013 and 2014 for single family homes were $1,100 each year, and it is the exact same so far this year. The exact scenario holds true for condos too, where the median rental rate has remained at $795 since 2013. However, the median rental rate for townhomes continues to rise slightly. It was $895 in 2013, $925 in 2014 and so far this year, it is $950.
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.