Building Costs Per Square Foot in the City of Tucson (AZ), USA

Residential Construction Market Analysis in the City of Tucson (AZ), USA

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Building costs are -5% below the national average in the City of Tucson in Arizona. If you are looking to buy a property or invest in the real estate market, it is always essential to be informed. For that reason, we have prepared this article with everything you need to know about the residential construction market in Tucson, Arizona. This will help you know if the region is the ideal one for you, or if you should continue looking and expanding to other states.

Tucson (AZ) Construction Outlook

What makes Tucson stand out from other Arizona cities is the way it blends naturally into the midst of the city. Of course, everyone can see the mountains behind the buildings, but also the city effectively mixes plants and trees in the middle of the streets, making this city not feel like a concrete jungle.

Tucson has family houses, with 3 or 4 bedrooms, with a large park and garage. In this city, nature is privileged, and that is noticeable in the residential constructions. Even the buildings have some space with grass and plants or the famous cacti.

On the outskirts of Tucson, you can find some luxury houses. They are authentic mansions and have a value that exceeds $600,000, but you must bear in mind that they are giant houses. These do have pools and other types of features that you would find in a mansion in any state.

In the financial center of the city, you can find some buildings, all with a very 80’s style, full of cement, with few eccentricities and modest. In any case, there are more modern building projects to come in the next few years.

Tucson (AZ) Housing Market Analysis and Forecast

The Tucson, Arizona real estate market presents the ideal setting for sellers to earn profits, even higher than originally expected. This is because there is a high demand for properties, causing prices to remain stable and rise in some cases.

This year the value of the properties increased by 10%, and the properties take an average of 40 days to sell. It may seem like a lot of days, but it’s better than the national average. In addition, some houses sell for up to 5% of the list price, giving sellers more profit than they expected when they put their property on the market.

Although there is a lot of demand to buy properties, there has been a drop in the number of properties listed. It is only 1% in this month compared to the previous one, but it is expected that in the last months of the year it will reach an annual low peak. This is detrimental to buyers as they will not have as many choices of properties to purchase.

Basically, the prices go up and they have fewer options to choose from. In any case, people continue to buy in Arizona because it has good and affordable prices compared to other states, including others in the region. You can get big houses for a good price, and values ​​are expected to rise by 10% over the next year, so it’s also a good real estate market for investors.

Whether you want to invest or buy a property to live in Tucson Arizona, we recommend doing it right now, or during the winter months. There is always a drop in prices during those months and you will also have the possibility to bargain to obtain a property at a cheaper value than the list.

Tucson (AZ) Average House Price (Median Home Price)

The median home price in Tucson is $350,000. We must not forget that it is a city that attracts many people from the region, even from other states to live, so the value is expected to increase by up to 10 or 15% during 2023.

Remember that a median home price is a number that is obtained based on all the residential properties listed for sale, for that same reason you can find some properties at lower prices and others that are more expensive. The most determining factors are the neighborhood in which it is located, the state of the property, and the type of property it is.

Single-family homes have an average price of $350,000, and some experts say that in the summer of 2023 it can reach a peak of $380,000. The townhouses have an average value of $250,000 and reached an all-time high in June of this year when they cost $280,000. Condos/co-ops have an average value of $185,000, which is 18% more than the values ​​it had in this same period last year.

Condos/co-ops and townhouses are the ones that have grown the most, in some cases reaching an increase of 20% in value. This trend is expected to continue over the next year as these are the most popular properties in Tucson.

Proposed Residential Building Projects in Tucson (AZ)

The residential construction projects that are coming in the next few years in Tucson are varied, but all preserve the architectural spirit of the city. No project comes to propose a disruptive style, except for some buildings in the Tucson Metro.

These buildings will have more than 15 floors and will be completely glazed, so they look like those you would find in a big city. The apartments will also be varied, from studio apartments to apartments with up to 3 rooms where a family can live comfortably.

In Pima County, there are some condominium and townhouse projects. You can expect there to be a lot of new projects in this region as property values ​​have increased by 25% in the last year there and this is expected to happen by 2023.

Finally, some projects have the purpose of being rented. They are not single-family homes, but rather properties such as townhouses, condos, and duplexes. This is because many people choose Arizona to spend a not-so-cold winter, or there are many university students (more than 40,000 at the University of Arizona), so Tucson becomes the ideal place to rent.

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Building Costs Per Square Foot for Single Family Homes in the City of Tucson (AZ), USA

Building costs are -5% below the national average in the City of Tucson in Arizona.

Class 1 – Luxury Single Family Homes

The building cost per square foot for luxury private homes in Tucson City ranges from $327.65 per sqft to $502.27 per sqft, with the average being $386.67 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 2 – Semi Luxury Single Family Homes

The building cost per square foot for semi-luxury private homes in Tucson City ranges from $199.13 per sqft to $305.24 per sqft, with the average being $234.99 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 3 – Best Standard Single Family Homes

The building cost per square foot for best-standard private homes in Tucson City ranges from $128.73 per sqft to $195.52 per sqft, with the average being $150.71 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 4 – Good Standard Single Family Homes

The building cost per square foot for good-standard private homes in Tucson City ranges from $93.95 per sqft to $144.07 per sqft, with the average being $110.87 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 5 – Average Standard Single Family Homes

The building cost per square foot for average-standard private homes in Tucson City ranges from $76.26 per sqft to $116.78 per sqft, with the average being $89.92 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 6 – Minimum Standard Single Family Homes

The building cost per square foot for minimum-standard private homes in Tucson City ranges from $60.14 per sqft to $92.19 per sqft, with the average being $70.95 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.