How to Analyze Tucson Homes Like a Pro # 102 Population Growth

November 26th, 2007 Categories: Tucson Housing Statistics

In order to continue our understanding of how Tucson AZ real estate works we need to investigate how

population growth in Tucson and Pima County impact housing needs in and around Tucson.

Population affects:

1. Housing Demand

2. Home Value & Cost of Renting

3. Overall Economic Growth

All three of these topics are closely related and will impact each other as well as be affected by Tucson & Pima County population growth. For simplicity we will just run over some basic numbers. Right now Pima County population growth is at over 1,800 new people per month. The average home in Tucson has 2.39 occupants.

This translates to a demand of 600 - 750 new livable units every month.

Granted, not all of these people are buying houses, but they do need to live somewhere. Whether these people buy or rent will directly impact vacancy rates and/or home values. If they all rent, less rental units will be available thus increasing demand and price for rentals. If they all buy, available homes will have an increased demand and price. I can not tell you what they will do, but I can tell you that 1,800+ people a month will make a noticeable mark in very little time.

Lastly, people moving here will stabilize and/or help our local Tucson Economy grow faster than larger cities. This will help attract more people & more jobs, as well as drive the Tucson rental & real estate market to new heights.

Stay tuned for more info on How to Analyze Tucson Homes Like a Pro.