Realtor.com® housing trends data and Trend Report® Residential Market Watch, both for December 2025, point to the same theme: the market is giving buyers and renters more choices, while demand stayed steady enough to keep conditions broadly balanced.

TUCSON, AZ (January 29, 2026) — Tucson closed out 2025 with more inventory on the shelf and a more deliberate buyer, creating a noticeably more negotiable environment. On the supply side, Realtor.com® reported active listings rising 14.2% year-over-year to 2,490 homes in December—faster than the 12.1% national increase—while new listings in Tucson climbed 4.9% to 690, even as new listings nationally slipped 1.8%. Trend Report’s broader Southern Arizona lens showed the expected seasonal slowdown in fresh supply, with new listings down 17% month-over-month to 1,404, but inventory still remained elevated versus last year: 5,292 homes active, up 12% year-over-year, even after a 7% month-over-month dip from November. The result: a market that felt less tight than a year ago, with buyers seeing more options and sellers facing more competition.

Even with that expanded selection, end-of-year demand firmed up, according to Trend Report. Pending sales rose 10% month-over-month to 1,146, and closed sales increased 15% to 1,243, with both metrics higher than last December (+9% pending; +12% closings year-over-year). That steady demand helped keep conditions in a broadly balanced range, with months of supply at 4.26—tightening from November but still consistent with a more even market than the frenzier cycles.

Pricing trends also leaned slightly toward buyers. Realtor.com® put Tucson’s median listing price at $370,000, down 2.0% year-over-year (a larger dip than the 0.6% national decline). Trend Report’s closed-sale pricing echoed that softer tone: the median sale price slipped to $350,000 (-2.2% year-over-year), and the average sale price declined to $425,088 (-5% month-over-month) while remaining slightly higher year-over-year (+0.7%). In other words, both list and sale prices softened modestly, suggesting buyers gained leverage—without a dramatic drop in overall market activity.

Time-on-market signals reinforced that “cooler but healthy” picture. Realtor.com® reported homes in Tucson spent a median 65 days on market, up 10.3% year-over-year (still faster than the 73-day national median). Trend Report similarly showed marketing times rising, with median days on market at 39 across Southern Arizona (+26% month-over-month; +15% year-over-year). Longer marketing windows typically translate into more breathing room for buyers: more time to compare homes, negotiate repairs, and push for concessions, especially when inventory is up.

At the top end, Trend Report found Pima County luxury finished the year with firmer year-over-year performance but increased negotiability. Closed luxury sales totaled 40 (+14% YoY) while months of supply rose to 7.0, a setup that tends to favor patient buyers. Pricing remained resilient: median luxury sale price was $1,344,299 (+7.5% YoY), even as sales activity cooled from November’s surge.

Renters also saw the market normalize into year-end. Trend Report showed active rental listings at 839 (down month-over-month but up 25% YoY) and rents easing: average rent $1,806 (-7.0% YoY) and median rent $1,700 (-8.1% YoY). Leasing volume stayed healthy year-over-year (units rented +20% YoY), but the combination of higher supply and softer rents signaled a more choice-rich environment for tenants.

Bottom line: Realtor.com® and Trend Report® both underscore a 2026 market that’s less pressured and more balanced—with more inventory, slightly softer prices, and longer marketing times—while demand remained steady enough to keep Southern Arizona from tipping into a true downturn. Buyers and renters benefited most by staying informed, moving decisively on the right opportunities, and negotiating from a position of increased leverage.

For more historical data on the Tucson residential market, visit TrendReportAZ.com and “Connect”.

TUCSON, Ariz. (January 29, 2026) — Tucson’s office market posted a modest late-year improvement in the fourth quarter of 2025, with vacancy edging down as absorption improved from earlier quarters, according to Cushman & Wakefield | PICOR’s Tucson Office MarketBeat Q4 2025. Even with that progress, vacancy remains above what most brokers would consider a fully balanced environment. Marketwide vacancy ended the quarter at 9.5%, with 157,354 square feet of year-to-date net absorption and an overall average asking rent of $24.25 per square foot.

Healthcare users continued to anchor demand, accounting for the majority of leasing activity as medical groups pursue long-term occupancy needs backed by strong balance sheets. The quarter’s standout transaction was ACP’s 20,928-square-foot lease at 4801 E. Broadway Boulevard.

Performance varied by submarket. The Foothills continued to outperform due to limited available inventory and sustained demand, while East Tucson recorded higher-than-normal absorption. Downtown activity remained mixed, constrained by parking challenges and older building stock. On the development front, new office construction remained limited as costs and rental levels continue to make speculative projects difficult to pencil out, leaving most new activity concentrated in medical office space.

Lease rates were largely unchanged in the quarter, though the Foothills saw slight upward pressure as availability tightened. Typical lease terms ranged from 3 to 5 years, and landlords used property-specific incentives to facilitate transactions. Tenant demand continued to favor smaller, well-located suites in newer or well-maintained buildings.

Office investment sales remained muted amid economic uncertainty and bid-ask gaps, with most activity driven by owner-users rather than institutional buyers. The most notable transaction was the sale of 1401 S. Pantano Road, a 47,531-square-foot office property, for $3.8 million to Airtronics.

Source: Cushman & Wakefield | PICOR, Tucson Office MarketBeat (Office), Q4 2025.

TUCSON, Ariz. (Jan. 28, 2026) — The Mahoney Group office building at 5330 N. La Cholla Blvd. in Northwest Tucson, a single-story property located on La Cholla Boulevard south of River Road, has sold. The 17,019-square-foot building traded for $3.2 million ($188.03 PSF) in an owner-user transaction.

The seller, M & O Tucson, LLC, an affiliate of The Mahoney Group, was represented by Isaac Figueroa, CCIM, SIOR, with Larsen Baker. The buyer, Spencer Land, LLC, an affiliate of Spencer Construction,  was represented by David Carroll with Paul Ash Commercial Real Estate.

Built in 2008, the building totals 17,019 square feet on approximately 1.7 acres within the Riverside Crossing commercial park.

The buyer and seller are expected to each occupy a portion of the building in the short term before the buyer takes full occupancy.

Spencer Construction is a locally owned construction firm serving Southern Arizona, providing full-service heavy civil and security infrastructure, including general contracting and construction management across diverse projects. Founded in 2017, the company is led by Patrick Spencer and is based in Tucson, learn more  at Spencer Construction LLC | Heavy Civil Contractor in Tucson, AZ

For more information on this transaction, contact Isaac Figueroa, CCIM, SIOR, at (520) 296-0200, or David Carroll with Paul Ash Commercial Real Estate at (520) 795-2100.

Source: RED Comp #12300