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House prices hit record highs in 2021 with affordability concerns continuing in 2022.

real estate
Posted at 4:48 PM, Jan 12, 2022
and last updated 2022-01-12 19:36:04-05

TUCSON, Ariz. (KGUN9) — The Tucson Association of Realtors has released their annual report for 2021. Home prices and rental rates continued to rise from 2020 levels and reached all-time highs.

Home prices soared in 2021with the median sales price for the Tucson area increasing 23% to $314,000. The Tucson Association of Realtors says limited inventory continues to clash with high demand and new construction has not been able to keep up.

“The material costs have gone up and wait times are longer,” said Long Realty Real Estate Agent Matthew Landau. “You can see it even if you tried to buy an appliance it is taking longer.”

Landau says some of the biggest price jumps in southern Arizona occurred in Santa Cruz and Cochise counties, along with the suburbs surrounding the city of Tucson.

“You have Oro valley, new developments in Marana, you go over to Sahuarita there's still developments, west side, east side, you go down near Vail there’s new developments popping up everywhere,” said Landau.

Rent is also on the rise. In December, the cost to rent a single-family residence went up more than 13% from the year before. The average is over 1800 dollars a month.

“I’ve seen single family homes, depending on where you are in town, anywhere from $1400 to $2500 and up,” he said.

Landau says sky-high rents are a perfect reason to consider buying a home. Saying your monthly mortage could be less than what you are paying in rent.

“You are building your own equity, it's an investment,” he said. “If you are lucky enough to do it, put money in your own pocket.”

But with interest rates expected to rise over the next year, the Tucson Association of Realtors says housing affordability concerns will continue in 2022.