Latecomer to the recession is one of HomeUnion’s top markets for upside potential
IRVINE, Calif., March 6, 2017, – HomeUnion, an online real estate investment management firm, has announced that Phoenix is one of the top investment markets in the U.S. in its Upside Potential ranking. While most markets have recovered all of the value lost during the downturn, upside potential measures markets that were late to the recovery, and still have strong opportunities for investment.
“Phoenix drew investors consistently during the years following the recovery; however, a recent scarcity of deals means that investors have moved into other markets or are accepting lower returns than were available just a few years ago,” says Steve Hovland, director of research at HomeUnion.
“Nonetheless, a significant amount of new supply is coming online this year. At the same time, the pace of employment growth cooled in recent months. Although the local economy is expected to regain some momentum, vacancy is forecast to inch higher in the coming months.”
Here are some key takeaways on the Phoenix investment housing market:
- The metro’s year-over-year employment growth is projected at 2.4 percent in 2017, compared to 1.7 percent growth nationally.
- Single-family rental (SFR) vacancy in Phoenix is expected to increase by 40 basis points to 6.3 percent.
- Rents for Phoenix SFRs are anticipated to grow to $1,380 per month, up 2.5 percent from 2016.
- Prices for investment homes in Phoenix ended 3Q 2016 at $179,000, with over 80 percent of investors choosing to use leverage
For more information on the state of the U.S. investment housing sector and market conditions in 29 metros nationwide, download the 2017 National Single-Family Rental Research Report.
HomeUnion is an online real estate investment management firm. Based in Irvine, Calif., it provides all the services needed for individuals to invest remotely in single-family rental (SFR) properties. The company uses a combination of research and proprietary analytics to incorporate data on over 110 million homes and 200,000 neighborhoods into their database, and then delivers its solutions to an on-the-ground infrastructure that currently serves 11 locations. HomeUnion’s role spans the lifecycle of the investment transaction: identifying sound investments, handling all aspects of acquisition, maximizing income, protecting asset value, and selling the asset when the time comes.
Communications Manager, HomeUnion