Tucson, AZ Housing Market
AI-powered market intelligence for the Tucson, AZ metro area.
PropertyIQ Scores
Tucson, AZ Market Analysis
Market Overview
Tucson’s PropertyIQ Score of 15 out of 100 places the market in weak territory. The score is driven by negative home value momentum, with a 12-month change of -0.66% and a 3-month change of -1.19%, along with a median days on market of 64 and 20.0% of listings reporting a price cut. These indicators point to a market where sellers are competing for buyer attention and prices are edging downward rather than appreciating.
Compared with state benchmarks, Tucson’s median home value of $340,855 is well below the state average of $421,381, a gap of roughly $80,526. At the same time, the median household income of $67,929 is also below the state average of $76,872. Despite lower home prices, the affordability gap is not as wide as the raw price gap because incomes are lower too: the local home value is about 5.0 times median household income, while the state average is about 5.5 times median household income. Tucson’s rent index of $1,483 is slightly above the state average of $1,431, and the unemployment rate of 4.4% is lower than the state average of 4.9%.
Overall, the data describe a market with relatively modest home prices, a somewhat stronger rental market than the state average, and a healthier labor market, but with clear downward price momentum and slow selling conditions. That combination supports a weak PropertyIQ Score and a cautious read of near-term housing conditions.
Key Trends
The first trend is negative home value momentum. The 12-month momentum of -0.66% and the 3-month momentum of -1.19% show that price declines have accelerated recently. The reported year-over-year home value change of $-2 is essentially flat in dollar terms, but the momentum numbers suggest the market is tilting downward. Additionally, 20.0% of listings have had a price cut, which reinforces that sellers are adjusting expectations.
A second trend is slow turnover. The median days on market is 64, meaning homes are taking roughly two months to sell. With 3,686 homes for sale, buyers have a meaningful number of options. The 20.0% price-cut share and 64-day median days on market together indicate a buyer-friendly environment.
A third trend is relative rental market strength. Tucson’s rent index of $1,483 is $52 above the state average of $1,431. That is notable because home values in Tucson are substantially below the state average. The combination may indicate that rental demand is holding up better than for-sale demand.
A fourth trend is labor and income alignment. The unemployment rate of 4.4% is below the state average of 4.9%, which may support household stability. However, median household income of $67,929 trails the state average by $8,943, limiting local purchasing power. Population growth is reported as N/A, so migration-driven demand cannot be evaluated from the provided data.
Who Is This Market For
This market may suit first-time buyers who plan to stay in the home for several years. The median home value of $340,855 is well below the state average, and with 20.0% of listings showing price cuts and a median 64 days on market, buyers may have room to negotiate. The lower unemployment rate of 4.4% may also help local households feel more secure, though the median household income of $67,929 is below the state average.
Buy-and-hold investors may also find some appeal. The rent index of $1,483 is above the state average, while home values are below the state average. For investors focused on rental income rather than short-term appreciation, that combination can be more attractive than markets with higher prices and lower rents. However, the PropertyIQ Score of 15/100 and negative home value momentum suggest that short-term flippers or appreciation-focused buyers should be cautious.
Move-up buyers may face headwinds. Selling an existing home in a market with 64 median days on market and a 20.0% price-cut share can be slower and may require pricing flexibility. The negative 3-month and 12-month momentum also means existing homeowners may not be able to rely on recent appreciation to fund their next purchase.
Outlook
The near-term outlook is soft based on the available data. The 3-month home value momentum of -1.19% is more negative than the 12-month momentum of -0.66%, indicating that price weakness has been more pronounced recently. With median days on market at 64 and 20.0% of listings cutting prices, sellers are likely to continue facing competition for buyers. Inventory of 3,686 homes for sale adds to that buyer leverage, though the data do not include sales volume to calculate months of supply. The rent index of $1,483 and unemployment rate of 4.4% provide some support, but population growth data is N/A, so the demand outlook cannot be fully assessed. Unless these momentum and days-on-market trends shift, the data do not support expectations of rapid home value appreciation in the near term.
AI-generated analysis based on current market data. Last updated September 13, 2026.
Get Tucson, AZ market updates
Choose your role for tailored insights.
Tucson, AZ market data
Tucson, AZ Housing Market Overview
Tucson, AZ's median home value is $341K, down 0.7% over the past year. Homes here sell in a median 64 days. Its PropertyIQ Score of 15 sits below the state average of 50, marking a market positioned to lag its state over the next three years.
The Tucson, AZ metro area is one of 900+ US metropolitan markets that PropertyIQ scores each month. A single PropertyIQ Score blends Zillow price momentum with Realtor.com market-flow signals to estimate 3-year excess appreciation versus the market's state — showing not just where prices stand today, but how the market is positioned relative to its peers.
Mountain West markets combine outdoor lifestyle appeal with booming tech and remote-work migration. Cities across Colorado, Utah, Arizona, and Nevada have experienced some of the nation's fastest appreciation, though rising interest rates have introduced new dynamics to these previously red-hot markets. Within the Mountain West, Tucson, AZ's PropertyIQ Score of 15 runs below the Mountain West norm.
Arizona's housing market experienced a dramatic boom-bust-recovery cycle, making it a useful proving ground for PropertyIQ's price-momentum and market-flow signals. The state's population growth from California migration continues to drive demand.
For the Tucson, AZ market, PropertyIQ calculates a single score each month from four inputs: twelve-month Zillow home-value momentum, three-month Zillow home-value momentum, median days on market from Realtor.com, and the Realtor.com price-reduced share. The score is computed nationally across all metros and calibrated so 50 equals the state average. Across the validation history, metro markets in the top score band have outperformed their state by roughly 1.7 percentage points more per year than bottom-band markets. Momentum here has been negative, with home values down 0.7% over the past year.
Use PropertyIQ's interactive analytics to compare Tucson, AZ against any other US metro on its PropertyIQ Score and underlying metrics. Generate a free AI market report, explore historical trends on the graphs page, or see how this market ranks on the scores dashboard.
Counties in the Tucson, AZ metro area
ZIP codes in the Tucson, AZ metro area
View all 40 →Top markets in AZ
Market data through July 2026. Sourced from Zillow, Realtor.com, Redfin, U.S. Census Bureau, FRED, BLS, and BEA. Per-statistic source and date shown above.
Frequently Asked Questions
Is Tucson, AZ a good place to buy real estate in 2026?
PropertyIQ doesn't label markets simply good or bad. Instead, the PropertyIQ Score measures a market's demand momentum against its own state, where 50 marks the state average. Tucson, AZ currently scores 15, a very weak-momentum reading that leaves it positioned to lag its state over the next three years. For buyers, cooling demand usually brings more inventory, longer sale times, and real leverage to negotiate on price. Backing that up, the median home value here is $341K, down 0.7% over the past year. So whether Tucson, AZ is right for you comes down to your goals: a rising-momentum market can favor long-term appreciation but offers less room to negotiate, while a cooling one hands buyers more leverage. Treat the score as a timing signal to weigh alongside your budget, holding period, and plans for the property, not a verdict on the market's quality.
What is the PropertyIQ Score for Tucson, AZ?
Tucson, AZ's PropertyIQ Score is 15, indicating very weak momentum on a 1-to-99 scale. The score distills four transparent inputs into a single number: Zillow home-value momentum over the past 12 months, Zillow home-value momentum over the past 3 months, the median days homes spend on the market from Realtor.com, and the share of listings with a price cut, also from Realtor.com. Rising values and faster sales push the score up, while slow sales and frequent price cuts pull it down. The scale is calibrated so 50 equals the state average, meaning a score above 50 predicts the market will outperform its state over the next three years and a score below 50 predicts underperformance. PropertyIQ computes the score across every US market nationally, then recenters it against each state, so 15 places Tucson, AZ below its state benchmark.
Are home prices in Tucson, AZ rising or falling?
Home prices in Tucson, AZ are falling. Over the past year, the median home value declined 0.7%, reaching $341K. Over the latest three months, values slipped 1.2%, a sign near-term demand is softening. PropertyIQ derives these figures from Zillow's home-value index, which tracks the typical value across the market rather than only the homes that happened to sell, giving a steadier read than a raw median sale price. Both the 12-month and 3-month momentum readings feed directly into the PropertyIQ Score, so this price trend is one of the core signals behind Tucson, AZ's current score. Keep in mind that appreciation can vary widely by neighborhood and price tier across the metro area, so treat these figures as the market-wide baseline rather than a guarantee for any single property.
How quickly do homes sell in Tucson, AZ?
In Tucson, AZ, homes sell in a median of 64 days from listing to pending sale, based on Realtor.com market data. Median days on market is one of the clearest real-time reads on local demand: when homes move quickly, buyers are competing and sellers hold the advantage, while lengthening timelines signal cooling interest and more room to negotiate. Alongside sale speed, about 20% of active listings here have taken at least one price cut — a complementary demand gauge, since a rising share of reductions often precedes slower sales and softer prices. Both median days on market and the price-cut share feed directly into the PropertyIQ Score, where faster sales and fewer cuts push the score higher. As a general guide, medians under about 30 days indicate a brisk, competitive market, while medians well beyond 60 days point to buyers regaining leverage. Actual time on market still varies by price band, property type, and season, so treat the median as a market-wide baseline.
How current is this metro area data?
This Tucson, AZ market data is refreshed on a monthly cycle, with the latest figures current through July 2026. PropertyIQ ingests fresh data every month from a range of authoritative sources: home values and rents from Zillow, days on market and price-cut activity from Realtor.com, additional housing signals from Redfin, demographic and housing-stock data from the U.S. Census Bureau, mortgage and macroeconomic series from FRED, and employment figures from the Bureau of Labor Statistics and the Bureau of Economic Analysis. The PropertyIQ Score itself is recomputed every month once the new source data lands, so the score and its four underlying inputs always reflect the most recent complete reporting period rather than a static snapshot. Because official housing data is typically released with a short lag, the current-through date usually trails the present by a few weeks, which is normal across the industry and not a sign the data is out of date.