Land Specialists, Dan Feig and Aaron Mendenhall with Chapman Lindsey of Tucson predicted the Houghton Corridor “hot spot” for housing last November (See https://realestatedaily-news.com/houghton-corridor-next-hot-spot-tucson-housing/). Fast forward three quarters and those predictions are ringing true. While the Northwest submarket continues to have the most communities and permits pulled, the Southeast has higher producing communities. During Q2 the Northwest had four communities with 10 or more new home starts, the most being 15 starts in Pulte’s La Cholla Vista community. During the same period the Southeast (including East Tucson) had six communities with 10 or more new home starts. Two communities, DR Horton’s Acacia Ridge and KB Home’s Cantabria at Rancho Valencia each had over 20 new home starts.
KB Home is betting heavily on the Southeast submarket as they have three communities in various stages of development there. There are 107 lots nearly finished in Mountain Vail Reserve that should be opening for sales later this summer. KB’s La Cima Esplendora site on Houghton and Escalante with 57 lots should also be completed by late 2014, with development of 68 lots in Santa Rita Ranch II in Corona de Tucson to follow by the end of year.
Both Richmond American and Lennar are also enjoying consistent sales in their Mountain Vail Estates communities. Since opening at the end of last year, Richmond has started 25 homes and Lennar another 18. Further south in Corona de Tucson Richmond enjoyed strong sales as it closed out its Aviara and Oasis Hills communities. Richmond will be opening the new community of Sycamore Canyon and are looking at other opportunities in the area to keep their momentum going in the Southeast.
After a slow start last year, DR Horton’s Acacia Ridge community in Vail has been a top performer this year. Since opening last summer, 55 homes have been built or started, 22 of which were started in Q2, 2014. It has been their top selling community in three of the first six months this year. Their Sycamore Vista community has also been doing well. Since purchasing 50 lots late last year, they have started construction on 32 new homes, including 12 in Q2. It has consistently been one of their top three communities for sales so far this year.
Pulte continues to do well at Sierra Morado. It currently offers four product series within the community and built 19 homes there during Q2. The product and lots were adjusted during the past couple of years as their small courtyard and z-lot configurations proved unpopular. However, their new larger and traditional lots and corresponding new product are selling well. Pulte has another unit of over 400 lots to develop for a long term presence in the area.
Developers also recognize the demand for housing in the Southeast submarket. Santa Rita Ranch III in Corona de Tucson was purchased last year by Petrus Partners/Crown West and received final plat approval for 275 lots during Q2. The owners of Sycamore Vista are also in discussions to sell additional lots in Unit 5. There are several more platted lot communities in the area that are worthy of attention as the demand for homes in Southeast Tucson continues to grow.
To learn more Daniel Feig can be reached at 520-747-4000 x103 and Aaron Mendenhall is at 520-747-4000 x102.