As 2022 comes to an end and business leaders have eyes on the economic landscape ahead, Alliance Bank of Arizona has released a Regional Intelligence Report that provides an in-depth look at the key indicators driving Tucson’s economy. Created in coorporation with Beacon Economics, one of the nation’s leading Independent economic research and consulting firms, the report offers a broader picture of Tucson’s overall economic health, including into how current economic trends are expected to affect the remainder of this year and early 2023.
Labor data offers telling evidence of the strength of the local economy. Payroll increases are up in Tucson and employment levels remain slightly below the pre-pandemic peak in February 2020, while unemployment levels are still well below pre-pandemic levels.
Housing market data continues to support signs of post-pandemic economic recovery; however, the trajectory of incline in that trend line is stabilizing. From July 2021 to July 2022, Tucson home prices rose 17.6%, and while the pace of growth in the residential sector is likely to slow, numerous factors suggest the real estate market is well insulated from the possibility of a crash.
A workforce transitioning to a new mode of normal operations has positively impacted the commercial real estate market, in part due to a growing number of workers returning to the traditional office setting. Vacancy rates among office properties are down to 20.7%, while the average commercial asking rent increased by 1.6% in Tucson.
Although post-pandemic recovery drove an economic surge, there is little evidence of the growth abating. Growth patterns are likely to continue, although more moderately, through the end of 2022 and into 2023.
For an in-depth view of the Tucson Regional Intelligence Report, please click here.
If you are interested in viewing the slides from the presentation, click here.