By Gabriela Rico | Arizona Daily Star
Amid an ongoing housing shortage, homebuilders in Tucson are tapping the brakes on new homes as concerns about rising interest rates, construction and labor costs weigh on affordability.
But, closings remained strong with 1,752 homes closed from January through June — versus 1,688 in the first half of 2021 — and the average new home price climbed to $468,212.
Builders pulled 2,812 permits in the first half of this year, a 16% drop from the same period in 2021.
“I was surprised to see the June numbers,” said David Godlewski, president of the Southern Arizona Home Builders Association. “Interest rates and what’s happening to people’s 401Ks is causing buyers to pause.”