Arizona’s Looming Foreclosure Crisis

This is certainly not a surprise. It seems that, just like in Manassas and PWC, Arizona seems to be seeing an exodus of legal and undocumented Latinos from neighborhoods in Phoenix, which is fueling foreclosures and may the start of a new foreclosure crisis:

An exodus of people – both legal and illegal residents – could be one more drag on a housing-market recovery. Departures from a state where growth is the economic foundation could add to the number of foreclosures and vacant houses and apartments, all of which will hurt the housing industry just as signs of recovery are starting to appear.

Driving illegal immigrants out of Arizona is one stated purpose of the new immigration law. But the law, experts say, could also drive out legal residents and deter potential new residents – people who are afraid of what might happen to them or who simply object to the law.

Real-estate analysts and economists are watching for signs that both illegal and legal residents are moving from the state, while also tracking the number of newcomers to Arizona. After the immigration law goes into effect July 29, it may become one more factor in real-estate forecasts for the region.

“Estimates are that there are several hundred thousand undocumented aliens residing in Arizona,” said Phoenix housing analyst Mike Orr, publisher of the Cromford Report, a daily housing-research report. “If the law has the intended effect and these people do leave, then both population and demand for housing will probably decline.”

Of course, this may be what the folks in Arizona want. Good luck with that one.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s