By Gabriela Rico | Tucson
Some national builders are taking a “wait-and-see” approach to new construction in Tucson as they monitor how political policy will impact the price of material and labor.
The building break is happening as the city stays eager to find a way to get more infill home projects going to meet demand and the average new home price in Tucson has crept above $500,000.
In January, the average new home price here was $503,375, surpassing the half-million mark for only the second time in Tucson market history. The average price rose to $513,062 in May of 2023, then slowly settled back down as the market stabilized and more new homes were developed.
Meanwhile, permits for new homes here dropped by nearly 43% in January, compared to January 2024.
“Historically, uncertainty does not play well with consumers, producers or suppliers,” said local housing analyst Jim Daniel, with R.L. Brown Reports. “The strong market for new homes in Tucson may continue and the forecast for new housing could be enhanced . . . but we really have no choice but to adopt a wait-and-see approach.”
Because most national homebuilders are interested in large land parcels to build multiple homes, the city of Tucson is trying to implement a new tool to encourage smaller builders to create new housing on vacant lots or empty parking lots in urban areas.
