Although many Canadian real estate investors are reluctant to make investments outside of the country due to the loonie’s current value, certain markets south of the border, like Arizona, are hard to resist. Increasing numbers of Canadian investors are looking to the state as a strong bet for investment outside of Canada’s turbulent market.
But what is it about Arizona that makes it a great market for real estate investors right now? “The affordable price of homes in Arizona in relation to our neighbouring states of California, Colorado, Utah, and Nevada makes the state really attractive to investors,” says Alan Jones, Division President for the Lennar Phoenix Division. “Also, Arizona is experiencing very strong job growth and that is expected to continue for the next several years.”
One of the prime investment spots in the US’ sixth-largest state is the Greater Phoenix area. With a population of more than 4.5 million - making it the 12th largest metropolitan area in the US - Phoenix’s local economy generated upwards of $215 million in 2014. Even without the 1 million Canadian visitors who flock to the state every year, Phoenix is an attractive location for investors looking for strong returns.
“Vacancy rates are approximately 6% and rental rates are anticipated to increase by 5% this year,” Jones says. “Home prices are expected to increase at a moderate rate of 3% this year. We have sold several homes recently to investors and because of the affordability of the market; we think real estate is an ideal investment in Arizona.”
Jones sees a bright future for Arizona’s real estate industry and believes it’s a good time for Canadians to invest in the market. “Our market hasn’t seen the significant price increases that other markets have experienced yet,” he says. “For a Canadian thinking about investing, location and timing should be top priorities.”