Average home price (2011): $155,600
Projected home price (2014): $148,200
Gross rent (2011): $834
Projected gross rent (2014): $936
Phoenix was the poster child for the housing bubble: Speculation sent home prices soaring by annual double-digit increases for three years until the bubble popped in 2007 and they have fallen more than 47% since.
Foreclosures have been a big problem here and many people who lost their homes are now renting. As a result, rents are on the rise. Local Market Monitor estimates rents will increase by more than $100 a month over the next three years.
The two biggest positives for
those looking to invest in rental properties in Phoenix, according to Winzer, are that the job market is growing again and people are still moving to town. In fact, the population has grown by 8% since 2006.
He expects rental investments to pay 2.3% bigger return in the Phoenix metro area than the national average.
NEXT: Fort Lauderdale, Fla.
