Tucson Q2 2026 Market Report

Key Takeaways

• Trailing 12-month absorption of 710 units has outpaced the 462 units delivered in Tucson, with quarterly absorption holding at 201 units in Q2 2026 following 217 units in Q1, signaling durable demand despite a flat local job market.
• The under-construction pipeline has thinned to 1,227 units (1.4% of inventory), though trailing 12-month starts of 716 units, up sharply from 291 a year ago, point to a reaccelerating development cycle.
• Effective rents of $1,106 per unit declined 2.0% year-over-year but rose 1.1% quarter-over-quarter, while stabilized occupancy of 89.5% held roughly flat sequentially and slipped 20 basis points from a year ago.

Market Outlook

Tucson’s multifamily market is moving into a low-supply environment that should provide a constructive backdrop for recovery over the next several quarters…