Tucson, Arizona, is a popular destination for both tourists and short-term renters. With its warm weather and diverse culture, Tucson has a lot to offer to those looking to rent out a property.
Whether you are a seasoned real estate investor or just starting out, this city offers many opportunities to make a great return on investment.
Let’s take a closer look at the short-term (Airbnb) rental market in Tucson and what it has to offer.
Homes Appreciation and Median Home Value
Zillow reports that homes in Tucson appreciated 3.10% over the past year, and the median home value in the city is $327,123.
This is great news for those looking to invest in the real estate market, as it indicates that there is potential for substantial appreciation over the long term.
Occupancy Rate and Active Short-Term Rentals
Chalet reports that the occupancy rate in Tucson is 56%, and there are 5,021 active short-term rentals in the city.
This indicates a high demand for short-term (Airbnb) rentals in Tucson, making it a great destination for those looking to rent out their properties.
Additionally, the median home value in Tucson is relatively low compared to other popular destinations, making it a great option for those who are just starting out in the real estate market.
Supply
The most popular homes are 3-bedroom homes, comprising 30.04% of inventory. This is followed by 2 and 4-bedroom homes at 29.00% and 17.11% of the total inventory, respectively.
The annual revenue for Airbnb rentals in Tucson is $28,600. This may seem low compared to other popular destinations.
Still, it is important to keep in mind that the cost of living in Tucson is significantly lower, making it an attractive option for those looking to maximize their return on investment. Additionally, the average gross yield in Tucson is 8.74%.
Average Daily Rate
The median ADR for the market is $186.60. The Average Daily Rate is the highest for 6-bedroom homes ($331) followed by 5-bedrooms and 4 bedrooms at $271 and $241 respectively.
Average Property Tax
According to SmartAsset, the average property tax in Tucson is 0.64%. This is relatively low compared to other popular destinations, making it a great option for those looking to minimize their tax liability.
Hosts
The market is not dominated by property management firms. The largest host is Evolve with 2.23% of the total inventory and an average review of 4.89⭐️s .
Median Household Income in Tucson
The median household income in Tucson, Arizona, is $48,058, according to data from the U.S. Census Bureau. This is relatively low compared to other popular destinations, making it an attractive option for budget-conscious travelers.
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Climate of Tucson
Tucson has a warm and sunny climate, with an average of 350 sunny days per year. The city experiences hot summers and mild winters, with temperatures ranging from the high 90s and low 100s in the summer to the mid-50s in the winter. Tucson’s unique location in the Sonoran Desert provides ample opportunities for outdoor activities, such as hiking, camping, and bird-watching.
Population Size
Tucson has a population of over 543,242 residents, making it the second-largest city in Arizona and one of the largest cities in the southwestern United States. The city is known for its diverse and vibrant community, with a rich mix of cultures, traditions, and backgrounds.
Guests
The majority of the guests come from inside of Arizona. 7.58% of all guests are from Tucson followed by Phoenix with 4.23%.
Sports Teams
Tucson is home to several amateur and semi-professional sports teams, including the Tucson Sugar Skulls of the Indoor Football League and the Tucson Roadrunners of the American Hockey League. The city also hosts several annual sporting events, such as the Tucson Marathon, the Tucson Triathlon, and the El Tour de Tucson.
Colleges and Universities
Tucson is home to several colleges and universities, including the University of Arizona, Pima Community College, and Northern Arizona. The city’s diverse and highly educated population makes it a hub of innovation, research, and technology.
Crime Rate
Tucson has a relatively low crime rate compared to other cities of its size. The city’s police department works tirelessly to maintain public safety and to ensure that residents and visitors alike can enjoy a safe and secure experience in the city.
Visitors to Tucson
Tucson is a popular tourist destination, with over 5.8 million visitors yearly, with the majority coming from within the United States. The city is also a popular destination for international travelers, with many visitors coming from Canada, Mexico, and Europe.
The city’s warm weather, natural beauty, and exciting outdoor activities make it an attractive destination for tourists worldwide.
Biggest Tourist Attractions
Tucson is home to several world-class tourist attractions, including:
- Saguaro National Park: a beautiful park filled with towering cacti and breathtaking scenery
- The Tucson Museum of Art: a world-renowned museum featuring art from around the world
- The Arizona-Sonora Desert Museum: a unique museum showcasing the flora and fauna of the Sonoran Desert
- The Pima Air and Space Museum: a fascinating museum showcasing the history of aviation and space travel.
Peak Season
Tucson’s peak season is during the winter months when visitors come to escape the cold weather in other parts of the country. The city is also a popular destination during the spring and fall when visitors come to enjoy the mild weather and breathtaking natural beauty.
Conclusion
In conclusion, Tucson, Arizona is a bustling city with a unique blend of natural beauty, cultural richness, and economic opportunities. With its warm, sunny weather, abundant outdoor recreation options, and thriving arts and cultural scene, Tucson is an ideal destination for visitors looking to experience the best of what the southwestern United States has to offer.
Whether you are interested in history, outdoor activities, or simply soaking up the sun, Tucson is sure to provide an unforgettable experience. With its friendly community, thriving economy, and high quality of life, Tucson is an excellent place to live, work, and play, and the city is poised to continue to grow and thrive in the years to come. Whether you are considering a short-term rental property, looking to relocate to the area, or simply interested in visiting, Tucson, Arizona, has something to offer everyone.
