I can add a little to this story: I know of an individual investor (through a close friend) in the Phoenix area who has bought almost 100 homes over the last 18 months. The investor has shared with me his portfolio. He has only bought single family homes, no condos. His average purchase price was under $35,000 and most of the homes are 3 br / 2 ba.Incidentally the housing prices in Manassas Park are now about half what they used to be.
He is renting the homes, many by the room. Yeah, they sound like flophouses! The investor is starting to have a vacancy problem that he attributes to the new Arizona immigration law that takes effect on July 29th.
Wednesday, July 07, 2010
Immigration and Housing Prices
I still have a bee in my bonnet about the relationship of immigration to housing prices, and the tightening of enforcement to price drops. I found another bit of support in these paragraphs from a Calculated Risk post: