The hot niches in Phoenix high rise and loft urban living are rentals and distressed properties.
During the boom many investors preferred buying high rise condos instead of single family detached homes because the construction of high rise takes much longer (three to four times longer) so there is the potential for so much more appreciation prior to the investor taking possession of the property. Thereby the investor would walk into tons of profit with little money out of his or her pocket.
That was the theory anyway.
Reality turned out to be much different.
During the years it took for the high rises to get built the market slowed, then stumbled and then fell. Buyers were then faced with walking away from ten or twenty percent downpayments or move forward with the purchase. I think if they had known just how bad the market would ultimately get that many of them would have walked away from their earnest money instead of closing on the purchase (actually many did walk away but many many more should have).
Anyway, tons of investors bought tons of high rise condos and now they are stuck. Soooooooo, they are renting them out or are walking away from their loans. The conclusion? Renters are getting great smokin' deals in expensive high rise condos or savvy buyers are getting the same condos at half of what the previous owner paid.
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