Tucson Multifamily Market Report
Labor Market Shifting to Advanced Industries,
Sparking Performance Gains and Investor Fervor
New tech-related roles support strong household formation. Tucson’s unemployment rate fell to 3.7 percent in February 2022, the lowest level since before the financial crisis. The growth of the local semiconductor and autonomous driving segments has helped put Tucson in a position to surpass pre-pandemic employment highs during 2022. In addition, expansions from Raytheon and biotech firms, such as Roche, are helping the area retain more University of Arizona alumni than in the past. This economic growth is aiding renter demand, especially in the Class A segment, as younger professionals with above-average incomes represent a prime demographic for luxury properties. Skilled labor opportunities will facilitate a rate of household formation during 2022 that ranks among the top 10 nationally.