Alliance Bank of Arizona, a division of Western Alliance Bank, Member FDIC, has released a Regional Intelligence Report that takes an in-depth look at the key indicators driving Southern Arizona’s economy.
Created by Beacon Economics, one of the nation’s leading Independent economic research and consulting firms, the report provides a broader picture of the Pima County’s overall economic health and provides a window into how current economic trends are expected to affect 2022.
“As business leaders across Southern Arizona look toward 2022, they’re seeking out opportunities to capitalize on the state’s economic health in a way that positions them for optimal growth and success. Alliance Bank’s Regional Intelligence Report takes an unbiased and thoughtful look into local data that is affecting the state of business from healthcare and retail to real estate and manufacturing with the goal of helping companies across Southern Arizona better prepare for tomorrow,” said Steven Odenkirk, managing director of commercial banking at Alliance Bank of Arizona.
The report takes a deep dive into data harvested over the past year from a broad spectrum of drivers, including unemployment, housing and commercial real estate. Among the insights:
Jobs Have Bounced Back
The mood may have been somber in early 2020 as companies were forced to furlough employees, however Pima County is bouncing back strong from COVID-related economic shocks. By August 2021, the area regained 83% of the jobs lost between February 2020 and April 2020, outpacing national trends, which have seen the U.S. has rate recovering only 75.1% of jobs over the same period.
Residential Real Estate is Thriving
The housing market in Pima County has been one of the steadiest and strongest indicators of the region’s economic recovery during the pandemic. From February 2020 to August 2021, Pima County home prices rose 31.1% making the region’s median home value $321,100. The report delves into the key drivers behind the growth, including the impact of the labor market, mortgage rates and inventory.
Virtual Operations Don’t Stop Commercial Real Estate Demand
The report also reveals an interesting phenomenon unique to the past 18 months. Although some businesses shifted operations to virtual environments, the demand for office properties has remained constant over the last year in Pima County. Office vacancy rates hit 22.9% in the second quarter of 2021, down 1.6 percentage points from a year earlier, while the average asking rents increased 0.8% in Pima County.
Looking to 2022
As growing numbers of Arizonans become vaccinated and the economy settles into its new normal, Beacon Economics predicts that 2022 will continue on the same upward growth trajectory. For an in-depth view of the Tucson Regional Intelligence Report, please click here.