New homes go up in the Gladden Farms community in Marana. The area has seen 232 lot sales so far this year, with nearly 300 more either in escrow or the offer stage.
Some of the new homes in Gladden Farms. “All the construction trades ... are all as busy as can be and pushing to keep up,” said Dean Wingert of Crown West Land Group.
KB Home is introducing a new floor plan that features an in-home office as more people anticipate continuing to work from home even after the pandemic.
Homebuilders are hustling to keep up with an unforeseen demand for new homes that is being fueled by low mortgage rates, lack of existing home inventory and a work-from-home model that appears to be with us for some time.
The Tucson market is also attracting tech workers from places such as Silicon Valley, who are indefinitely working remotely and want to leave urban areas and reduce housing costs.
With commute times no longer a major factor for homebuyers, outlying communities such as Gladden Farms, Star Valley and Red Rock are seeing a big uptick in interest, according to developers.
And one national homebuilder is introducing a new floor plan that includes a home office with modular desks, shelving, USB charging outlets and soundproof rooms.
In June, homebuilders pulled 428 permits locally compared with 351 in June 2019 — an increase of nearly 22%. New home closings were up more than 19% in that same time frame.
“Given the underlying fundamentals of our market, we’re generally optimistic,” said local housing analyst Jim Daniel, president of R.L. Brown Reports. “And, as these tech companies say, ‘This work-from-home thing is working really well, and you’re free to work wherever you want,’ Tucson is going to be a beneficiary.”
Daniel predicts the summer months will continue to see strong sales for new homes as existing homes for sale have dropped and they’re only on the market for an average of seven days, according to data from the Tucson Association of Realtors.
“The affordable option now in housing,” Daniel said, “has become the new home.”
“A LITTLE BIT SURPRISED”
Predictions for the housing market were dire in March and April as the coronavirus shuttered businesses and put people out of work.
Some homebuilders stalled projects and wanted extensions on their land deals, unsure of what was in store.
Then in June, some communities started selling between 10 and 15 homes a month and homebuilders were eager to buy up land.
In July alone, there were 375 lots sold in Star Valley, on Tucson’s far southwest side off west Valencia Road, and 232 lots in Gladden Farms in Marana, said land broker Will White, of Land Advisors Organization.
“We were a little bit surprised,” said Jeff Grobstein, president of Meritage Homes in Tucson. “No doubt that low interest rates are a real driver and resale has gotten gobbled up because some sellers have decided to stay put.”
He said the primary homebuyer is tired of paying rent and is taking advantage of low mortgage rates, but now that’s being complemented with migration from other states.
“People are accelerating their decision to leave California, the Midwest and Northeast, where the economic environment is less stable,” Grobstein said. “They want to get into a wide-open space.”
To keep costs down, homebuilders are building on smaller lots and putting up more spec homes so buyers can move quickly.
Meritage also offers flexible spaces in its new homes for a work niche and it is looking at ways to broaden the home-office options, Grobstein said.
Just last week KB Home introduced its new floor plan that offers an in-home office with modular furnishings.
“The pandemic has directly impacted the design of our homes,” said Amy McReynolds, president of KB Home’s Tucson division. “With more and more Tucson residents working from home, the need for a home office has become real.”
The office option will be an available feature at KB Home’s Bella Tierra development, near Irvington Road and Camino Seco, and at the Northwood Point community, near Ina Road and Camino de Oeste.
KEEPING UP WITH DEMAND
Developers of master-planned communities in the Tucson market are selling lots faster than they can prep it for homebuilders.
New homes are still pricier than buying an existing home, with the median price for a new home at $307,000 versus $230,000 for a resale home, but the lack of sellers is creating a demand for new builds.
“We are highly focused on moving as quickly as we can to continue to have lots prepared for our homebuilder partners with an efficient and streamlined lot delivery program,” said Bob Bambauer, executive vice president of Sunbelt Holdings, which has several communities around Tucson. “The Tucson housing market has shown great resiliency during the COVID pandemic.”
Dean Wingert, vice president of Crown West Land Group, said its Gladden Farms community in Marana has been a bright spot for homebuilder and homebuyer interest.
“We’ve sold 232 lots this year, have another 81 in escrow, and offers on the table for over 200 more,” he said. “The homebuying demand is acting as if the pandemic is a nonissue.
“All of the construction trades — carpenters, roofers, site work, plumbers, etc., are all as busy as can be and pushing to keep up.”
Demand for residential construction workers is at a record high around the country.
According to the Associated General Contractors of America, construction employment grew by 20,000 jobs in July — mainly in the housing sector — as government and private-sector projects remain on hold.
Tucson gets by during coronavirus pandemic
The iconic Casa Molina bull and matador statue both sport masks on the first full week of the loosening of COVID19 restrictions, May 23, 2020, Tucson, Ariz. The bull previously had a mask on the testicles.
Tucson gets by during coronavirus pandemic
Michelle Leon Cordova, right, mother, and her son Sahuarita High School senior Lino Cordova, whom is fighting cancer, wave at staff members from Diamonds Children Center, friends and the Marana Police Department during a car parade, celebrating Lino's graduation, outside of his home on May 13, 2020 in Sahuarita, Ariz. Cordova stood on the sidewalk while the team from Diamond Children Center, friends and the Marana police department gave Cordova a graduation gar parade. Cordova was given a gift basket with his favorite snacks, gift cards as well as other items he enjoys. The car parade, also, celebrated another graduating senior fighting cancer from Empire High School, Noah Nieto. Nieto, also, received a gift basket with snacks, gift cards and other items Lino enjoys.
Tucson gets by during coronavirus pandemic
Michelle Leon Cordova, right, mother, brings celebration balloons to a car after staff members from Diamonds Children Center, friends and the Marana Police Department celebrate Sahuarita High School senior Lino Cordova, whom is fighting cancer, graduation with a car parade outside of his home on May 13, 2020 in Sahuarita, Ariz. Cordova stood on the sidewalk while the team from Diamond Children Center, friends and the Marana police department gave Cordova a graduation gar parade. Cordova was given a gift basket with his favorite snacks, gift cards as well as other items he enjoys. The car parade, also, celebrated another graduating senior fighting cancer from Empire High School, Noah Nieto. Nieto, also, received a gift basket with snacks, gift cards and other items Lino enjoys.
Tucson gets by during coronavirus pandemic
Personnel from Tucson Medical Center line the heliport to watch A-10's from Davis-Monthan Air Force Base's 355th Wing and F-16's from the Arizona Air National Guard's 162nd Wing make a pass over the facility, one leg of an area wide community flyover, May 14, 2020, Tucson, Ariz.
Tucson gets by during coronavirus pandemic
Nancy Celix-Campos, right, a respitory therapist at Tucson Medical Center, watches the military flyover with her daughters, Giana, 12, and Jazmyn, 8, from Sentinel Peak on May 14, 2020. Two F-16 Fighting Falcons from Arizona Air National GuardÕs 162nd Wing and two A-10 Thunderbolt II's from the 355th Wing, assigned to Davis-Monthan Air Force Base, fly over Tucson area hospitals to honor healthcare personnel and first responders as they are some of the frontline workers dealing with the coronavirus disease (COVID-19) head on. "It's been an exhausting two to three months," says Campos, "it's pretty cool, I like how they're going by each hospital."
Tucson gets by during coronavirus pandemic
Two F-16 Fighting Falcons from Arizona Air National Guard’s 162nd Wing and two A-10 Thunderbolt II's from the 355th Wing, assigned to Davis-Monthan Air Force Base, fly over Northwest Medical Center north of Tucson on May 14, 2020.
Tucson gets by during coronavirus pandemic
A letter carrier portrait on the Ok Market building, located in the Armory Park neighborhood, is adorned with a face mask on May 18, 2020.
Tucson gets by during coronavirus pandemic
Rosemary Garcia waits for a family member outside of a store at Park Place Mall, 5870 E. Broadway Blvd., in Tucson, Ariz. on May 19, 2020. Malls reopened today under CDC guidelines and Gov. Ducey's new rules for businesses due to the Coronavirus pandemic. Park Place Mall has signs throughout the mall reminding customers to keep a six feet distance as well as hand sanitizer stations near each entrance. About half of the tables in the food court have been removed to allow for social distances as well as less than half of the stores have opened with new guidelines. Of the stores open, only 10 customers are allowed to shop in each store at a time.
Tucson gets by during coronavirus pandemic
Pat Schlote steams clothing before it is put on the sales floor at the Golden Goose Thrift Shop in Catalina, Ariz., on May 21, 2020.
Tucson gets by during coronavirus pandemic
Ada Contreras, teaching assistant, looks through containers while reorganizing toys at Herencia Guadalupana Lab School, 6740 S. in Tucson, Ariz. on May 21, 2020. As Child care centers begin to re-open when they are ready, Herencia Guadalupana Lab School is reorganizing and cleaning everything in the facility before re-opening on June 2. To allow for social distancing and decrease the amount of items children touch, Herencia Guadalupana Lab School has sheds where items will go as well as placing items in containers organized by category.
Tucson gets by during coronavirus pandemic
Jen Martinez, right, softball coach, teaches Skylar Reilly about hitting during a session at Centerfield Baseball Academy, 5120 S. Julian Dr., in Tucson, Ariz. on May 21, 2020. After re-opening on Monday, Centerfield Baseball Academy has implemented new policies in response to the Coronavirus Pandemic such as wearing masks, cleaning, signage, hand sanitizer and limiting the amount of people inside the facility.
Tucson gets by during coronavirus pandemic
Karl Bosma, left, and George Cantua, with facilities and maintenance, lay down stickers to mark six-foot separation distance around one of the baggage carousels, part of the efforts at Tucson International Airport to work within the restrictions of COVID19, May 22, 2020, Tucson, Ariz.
Tucson gets by during coronavirus pandemic
A lone passenger waits for a flight near one of the shuttered restaurants in the B Gates on the Friday afternoon before Memorial Day at Tucson International Airport, May 22, 2020, Tucson, Ariz.
Tucson gets by during coronavirus pandemic
Drew Cooper on the stage in the St. Philip's Plaza courtyard, May 22, 2020, Tucson, Ariz., where live music is back on the schedule.
Tucson gets by during coronavirus pandemic
Many people visit Tumamoc Hill during the first day of Tumamoc's re-opening in Tucson, Ariz. on May 25, 2020. After being closed due to the Coronavirus pandemic, Tumamoc Hill re-opened with some modifications. There are hand sanitizer stations throughout the hike to the top as well as arrows, spaced 10-ft apart, lined up and down the hill. Some runners, hikers and walkers are also wearing masks during their hike. "The steps we are taking aim to provide our community with needed exercise, connection to our beautiful desert and a sense of comfort in such a trying time, while balancing the fact that gathering as a community endangers each of us and our loved ones. This is an unprecedented challenge that we are taking extremely seriously," said Benjamin T. Wilder, director of Tumamoc Hill. Visitors are also asked to limit their group to three people and to not touch the gate at the top of the hill- a tradition for some who make it to the top. "This is a time when we need to establish new traditions and adapt in a creative manner that embraces empathy, unity, care and patience," Wilder said.
Tucson gets by during coronavirus pandemic
Pen Macias, artist, works on part 2 of a mural for a client on E. Broadway Rd., between S. Columbus Blvd. and S. Alvernon Way, in Tucson, Ariz. on May 25, 2020. Macias, known as The Desert Pen, has been working on her clients mural for the past three months. "It's the one thing I love, I have a passion for and the only thing I could be happy doing," said Macias. The mural represents her client, a single mother of four who works in the health care field. One half of the mural is dedicated to the connection between mothers and their children. The other half is dedicated to the connection between nurses and patients. The client wanted some positivity in the mural to show how nurses give a piece of themselves to their patients hence the puzzle pieces in the nurse and the patients, said Macias.
Tucson gets by during coronavirus pandemic
Christina Cortinas, posing at her home, May 28, 2020, Tucson, Ariz., with a photo of her and her mother, Catherine Rodriguez, in San Diego, 1991. Rodriguez is currently in assisted living and fighting COVID19. Cortinas hasn't seen her mother in months, the longest such span in her life.
Tucson gets by during coronavirus pandemic
Ruben Lopez looks through handouts while attending a Eviction Resource Fair with his family outside the Pima County Justice Court, on May 28, 2020.
Contact reporter Gabriela Rico at grico@tucson.com or Facebook.com/DailyStarBiz
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August 09, 2020 at 07:40AM
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Work-from-home era with no commute is affecting where, how new homes are built in Tucson area - Arizona Daily Star
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