The Southern Arizona rental market is entering a period of stability, with key trends pointing toward a more balanced environment for both landlords and renters. According to the latest data from the Multiple Listing Service of Southern Arizona (MLSSAZ), the median lease price in June 2025 was $1,800/month, representing a slight 0.3% increase year-over-year. While the total number of leases signed dipped by 3.8% compared to last June (227 leases), pricing remains steady—an indicator that the market is finding equilibrium after years of volatility.
Key Highlights from June 2025
- Median Lease Price: $1,800/month (up 0.3% YoY)
- Leases Signed: 227 (down 3.8% YoY)
- Total Rental Volume: $432,560 (down 1.4% YoY)
- Median Days on Market: 33 days (5 days longer than last year)
- New Listings: 384 units (up slightly from 2024)
- Active Inventory: 846 available units (3.73 months of supply)
Demand Concentration by Price Range
The $1,500–$1,999 price bracket continues to dominate the market, accounting for nearly half of all leases (95 total). This “sweet spot” is moving quickly, with properties leasing in a median of just 31 days and achieving virtually full asking price (0.01% over). In contrast, the luxury segment ($3,000+) experienced fewer transactions (8 leases) but a 2% premium over asking price, with a longer median of 74 days on the market. This suggests that while high-end rentals remain in demand, they require more time to secure the right tenant.
Market Shifts by Region and Zip Code
Southern Arizona’s rental market is far from uniform—regional dynamics tell vastly different stories:
- Northeast Region: Leases surged 300%, with total rental volume up 373.3%, although the median price dipped slightly to $1,995.
- Upper Southeast: Leases increased by nearly 28%, with median rents rising to $2,100 and properties renting 11 days faster (median 17 days on market).
- West Region: Leases fell by 50%, highlighting a stark slowdown.
At the zip code level, 85641 mirrored the Northeast boom, with leases up 300% and turnover speed improving significantly—median days on market dropped by 51 days to just 27 days.
Property Types and Inventory Insights
Single-family homes remain the most sought-after rental option, with 501 leases in June, followed by condos (191 leases) and townhomes (137). The median year built for leased properties was 1995, with an average size of 1,578 square feet, underscoring the demand for mid-sized, family-friendly homes in established neighborhoods.
Year-to-Date Trends
From January through early July 2025:
- Median Lease Price: $1,775 (down 1.4% from 2024 YTD).
- Leases Signed: 1,260 (down 3.4%).
- New Listings: 1,992 (up 4.5%).
- Median Days on Market: 34 (up six days).
Despite the short-term cooling, rental prices have seen significant long-term appreciation. For example, a typical three-bedroom home now rents for $1,775, compared to $1,025 in 2010—a nearly $800 increase.
What This Means for Renters and Investors
The Southern Arizona rental market is showing signs of recalibration:
- Renters may enjoy slightly more breathing room, with longer days on market and negotiation opportunities in mid-tier and high-tier price ranges.
- Landlords should fine-tune pricing strategies to remain competitive, especially as inventory stabilizes and the pace of leasing slows.
- Investors should focus on regions with emerging demand, such as Northeast Tucson (85641) and Upper Southeast, where activity and turnover are strongest.
Looking Ahead
The data suggests that Southern Arizona is moving towards a more balanced rental environment. While the overall median price remains steady at $1,800, regional and price-specific micro-markets present unique opportunities for both renters and property owners.
If you’re considering renting, investing, or need professional property management in Southern Arizona, RGroup Realty offers market expertise and innovative property solutions to help you make informed decisions.
Steve Rice
Steven R. Rice is the Founder and Designated Broker of RGroup Realty and Property Management and the driving force behind affiliated companies, including Elements By Design and Sizzle Marketing. With more than 24 years of real estate experience and over 17 years in property management, he specializes in residential real estate brokerage, property management, investor relations, property performance strategy, BINSR and repair coordination, agent development, and building integrated service models that connect brokerage, maintenance, and marketing. Steven holds the CRS, ALHS, CLHMS, CRPM, SRES, GRI, SFR, and e-PRO designations, and has served in leadership roles with Long Realty, Realty Executives, and Keller Williams before founding RGroup Realty and Property Management in 2024.