Once the poster child for national population growth and housing starts, Arizona, like other states historically reliant on construction, took a beating in the downturn, and the well-publicized forecast points to a long road to recovery.
In an August 16, 2011 article entitled “Phoenix housing recovery might take until 2016,” Phoenix Business Journal (PBJ) reporter Mike Sunnucks presents the case for Phoenix’s residential comeback. Drawing heavily on a quality research presentation by economist Elliot Pollack, PBJ focuses on a 2015 or 2016 return to health for the Valley’s housing market, with commercial seeing full recovery in 2014 or 2015.
Pollack deftly points out that Arizona closely mirrors U.S. employment trends, and we see Tucson following suit. How does this relate to the Tucson multifamily market?
The Tucson multifamily market should continue to see very slow progress for the next few years. A considerable number of distressed properties remain in the pipeline and will gradually be brought to market as short sales or REO.
Allan Mendelsberg, a Denver native, launched his commercial real estate brokerage career in Tucson in 2004. Previously with Marcus & Millichap, Allan joined PICOR to specialize in manufactured housing parks in the southwestern U.S., where he also brokers apartment complexes in greater Tucson for private investors as well as REITs.
Photo credit: Gary Rumack Photography