TUCSON, ARIZONA -- The Tucson land market continues to build on a record-setting year in Q4. The lack of ready-to-develop lot supply is driving larger deals in both volume and size. This is clearly on display by the current housing market, where demand for new homes continues to dramatically exceed the production supply. The Tucson region's SFR and multi-family permits continue to rise along with record median new home prices and overall rents.
Land Advisors Organization-Tucson started Q4 off with the sale of over 1,000 lots throughout the Tucson metro area. Among this total, a few noteworthy closings include:
- In north Marana, AMH Development, LLC purchased 435 lots in Remington Ranch from Tucson Farms, LLC.
- In Vail, Forestar (USA) Real Estate Group Inc purchased 135 acres in the Rocking K Master-Planned Community from Rocking K Development Co.
- In north Marana, Richmond American Homes purchased 119 additional lots within the Gladden Farms Master-Planned Community, from Gladden Phase II, LLC.
As entitled land with available utilities becomes more difficult to find and community counts continue to fall, Tucson homebuilders appear to be aggressively seeking out larger positions in specific growth areas to give them room to grow for years to come. This is particularly significant within the region's Master-Planned Communities.
White commented, "There is unanimous agreement that the Tucson market is severely undersupplied and that consumer demand for housing will continue to outpace supply here. The region is experiencing rapid population growth and a growing employment base that will continue to drive demand for the foreseeable future. We are seeing the robust demand for lots in Q4 as a sign that builders anticipate the market to stay strong for at least the next 24 months."
Will White and John Carroll of Land Advisors Organization-Tucson can be reached at 520-514-7454
PHOTO: Will White, Land Advisors Organization Tucson.