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Market Report

Tucson Multifamily Market Report

2Q 2023

Vacancy Cresting as Demand in Western
Reaches Jolts from Industry Expansions

Project delays soften near-term supply-side pressure. A pullback in deliveries this year and a moderation in construction starts may slow the pace of ongoing vacancy rises in the coming months. In light of availability tripling over the yearlong span ending in March, builders will be hesitant to start on new projects until the market stabilizes. As of the fourth quarter of last year, 2023’s delivery total was projected at 2,100 rentals, but the sum has since dwindled as several 200-plus-unit projects — such as Tucson Landing and The Alexander — delayed move-in dates to 2024, while several planned projects did not break ground at all. Still, nearly 3,200 apartments were underway entering April with delivery dates scheduled for next year, amounting to 3.8 percent of existing inventory. While this trend may offer some respite from further rising vacancy in 2023, it may be growing the potential for another recalibration next year. 
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