By Gabriela Rico | Arizona Daily Star
New home builds are down in Tucson and potential buyers, spooked by rising interest rates, are holding onto their existing homes.
Both of these factors are adding to the lack of available homes for sale and the biggest toll is being felt by renters.
Whether by necessity, because they can’t afford to buy a house, or lifestyle choice, higher rents have taken a toll.
While the upward spiral of rental prices in the Tucson market has slowed a bit, rents are still up to 50% higher than in 2021 and there’s no indication they will decrease significantly.
Earlier this year, homebuilders were starting homes before they were purchased because demand was so high, but that strategy has “vanished” said Jim Daniel, a local housing analyst with R.L. Brown Reports.
In September, there were 215 permits pulled for new homes — more than 52% less than September 2021 when homebuilders pulled 455 permits.
Daniel said it is a reflection of rising interest rates, which last week topped 7%, and the government’s “well-publicized desire to slow down the economy deemed overheated.”
