Despite thousands of new homes being built in Tucson, the current construction rate is lower than 20 years ago. New home permits surged over 60% in the first half of this year, reaching 2,610, but home prices remain high with no signs of falling. High interest rates are driving more buyers toward new homes as resale activity remains flat. The market is expected to issue over 4,000 new home permits by year-end, but this is still historically low compared to past peaks. Home prices have nearly doubled over the last decade, with limited supply keeping them high despite earlier predictions of decreased demand.
