Episodes
Washington DC: 6.1% Return on Investment (2011) Washington DC is another metropolitan area that represents a highly difficult environment for investors. With extremely high levels of regulation, high prices, and low rents relative to market value, it is not likely that investment properties in the nation’s capital will produce enough cash to cover their operating... Read more »
Published 04/14/11
Tampa, FL: 12.5% Return on Investment (2011) Moving up the Florida coast to Tampa reveals a somewhat less distressed market. This stems from the fact that Tampa did not experience the same high-rise construction boom as Miami, and did not become oversupplied with high-cost condominiums. As a result, the path to recovery for Tampa is... Read more »
Published 04/13/11
St. Robert, MO: 18.5% Return on Investment (2011) St. Robert is the city just outside of Fort Leonard Wood in Missouri. By the standards of many investors, St. Robert seems like an extremely small market that is hardly worth consideration by income property investors. However, the intrinsic demographics do not incorporate the impact of its... Read more »
Published 04/12/11
Seattle, WA: 2.9% Return on Investment (2011) The Seattle market experienced a significant value increase during the real estate bubble, peaking at the end of 2007 and dropping sharply during the financial crisis of 2008. Toward the end of 2009, values began to show signs of emerging stabilization. However, the correction resumed after the expiration... Read more »
Published 04/11/11
San Francisco CA: 5.2% Return on Investment (2011) San Francisco is another major market area in the state of California that has experienced significant challenges. The rapid escalation of market prices during the real estate bubble has compressed cash flow so severely that investors are almost certain to realize a net negative cash flow for... Read more »
Published 04/08/11
San Diego, CA: 5.8% Return on Investment (2011) San Diego is experiencing many of the same fundamental problems as Los Angeles, but with a lower degree of severity. The budget problems experienced by the state of California are affecting all of the major cities in the state, but San Diego is expected to be significantly... Read more »
Published 04/07/11
San Antonio, TX: 16.1% Return on Investment (2011) San Antonio experienced value stabilization in 2009, coming off a 2007 value peak. With fundamentally sound economics for the city, and a strong business environment, San Antonio is expected to resume its long-term trend of modest, steady value appreciation once a bottom in values is reached. Our... Read more »
Published 04/06/11
Portland, OR: -0.6% Return on Investment (2011) Portland experienced a cyclical expansion of market values similar to many other areas, and saw a subsequent decline after the financial crisis of 2008. The market showed signs of stabilization in 2009, but has subsequently resumed a downward correction. Values in Portland are regressing toward a more linear... Read more »
Published 04/05/11
Phoenix, AZ: 19.4% Return on Investment (2011) Market values in Phoenix are currently at approximately the same level as in the year 2000. The market area experienced a tremendous run-up during the real estate bubble and a spectacular during the financial crisis. During 2010, the regression back to fundamentals continued in Phoenix. For people who... Read more »
Published 04/04/11
Orlando, FL: 22.5% Return on Investment (2011) The city of Orlando experienced a tremendous increase in market prices from the year 2000 through 2006, and a downward correction in prices since the beginning of 2007. As 2010 concludes and 2011 unfolds, we expect to see prices stabilize and regress toward a long-term linear growth trajectory. ... Read more »
Published 04/01/11
New York, NY: -42.8% Return on Investment (2011) As the epicenter of US financial markets, New York has experienced a dramatic economic shock that is creating multiple problems for the state and city governments. The most pronounced of these problems is massive budget shortfalls that have spurred the elected officials to raise taxes instead of... Read more »
Published 03/31/11
Minneapolis, MN: -10.0% Return on Investment (2011) Market values in Minneapolis grew significantly from 2000 through 2005, and declined slightly until a larger correction was created by the 2008 financial crisis. In 2009, values appeared to stabilize but went through up and down swings as foreclosures came onto the market following and pulled the prices... Read more »
Published 03/30/11
Miami, FL: -6.9% Return on Investment (2011) Miami represents one of the most notorious bubble markets in the entire United States. Its prodigious rise and precipitous decline have served as a warning sign for the potential disaster that can await investors attempting to time value bubbles. However, Miami is also a unique market area, since... Read more »
Published 03/29/11
Los Angeles, CA: -17.5% Return on investment (2011) Los Angeles is a market segment area that is in serious distress, and is likely to experience continued difficulties before a recovery is in sight. The state of California is currently in the midst of a far-reaching budget crisis that is likely to result in dramatic cuts... Read more »
Published 03/28/11
Las Vegas, NV: -7.9% Return on Investment (2011) The Las Vegas market is very similar to Miami, due to the intense over-building of high-rise condominiums in both markets. The markets also share a similarity of value trajectories for single-family homes and high-rise units. The overall market value contractions in Las Vegas are being driven by ... Read more »
Published 03/25/11
Kansas City, MO: 15.4% Return on Investment (2011) Kansas City experienced a prolonged period of steady value appreciation up until its value peak in 2006, and only a minor correction afterward. The 2008 financial crisis only impacted Kansas City modestly, as its values had already contracted. The subsequent years saw moderate price volatility that appears... Read more »
Published 03/24/11
Indianapolis, IN: 32.0% Return on Investment (2011) Indianapolis has experienced repeated value fluctuations in 2009, resulting from the release of foreclosures into the housing inventory. When foreclosures were introduced into the market, they suppressed values and spurred capital inflows from owners and investors, which triggered the introduction of more foreclosed properties to capitalize on the... Read more »
Published 03/23/11
Houston, TX: 19.1% Return on Investment (2011) Houston differs from many other markets in that its values were severely depressed during the 1990’s, because of low energy prices. This led to a significant degree of value appreciation from 2000 through 2007, but a moderate contraction after the financial crisis that temporarily stabilized when the government... Read more »
Published 03/22/11
Detroit, MI: 9.7% Return on Investment (2011) Detroit is one of the most widely publicized toxic markets in the United States. Extensive financial difficulty with the auto manufacturers has crippled the primary employment base in Detroit, and plunged the market into free fall. This is compounded by burdensome taxes and regulations from the government and... Read more »
Published 03/21/11
Denver, CO: 13.1% Return on Investment (2011) The Denver area has been a historically stable real estate market for both owners and investors. Market values experienced a downward correction following the financial crisis of 2008, showed signs of stabilization as 2009 transpired, but that stabilization was short-lived, as the market experienced volatility moving out of... Read more »
Published 03/18/11
Dallas, TX: 19.6% Return on Investment (2011) Dallas experienced a series of moderate appreciation followed by a gradual contraction that has resulted in much less price volatility than has been experienced by other market areas. The area is expected to hit the bottom of its mild contraction in 2011 and then resume a course of... Read more »
Published 03/17/11
Columbus, OH: 22.5% Return on Investment (2011) Columbus was far ahead of most markets in its peak and adjustment periods, realizing its value height in 2005 and moving into oscillating periods of value stability and volatility following the financial crisis of 2008. Difficulties in the automotive sector have suppressed values in the upper Midwest, but... Read more »
Published 03/16/11
Columbia, SC: 25.0% Return on Investment (2011) Market Values in Columbia have been exceptionally stable after a moderate decline from its value peak. Since values did not appreciate significantly during the bubble, the subsequent contraction has been very mild. Some mild volatility emerged during 2010 as the government tax incentives expired, but is expected to... Read more »
Published 03/15/11
Cleveland, OH: 1.6% Return on Investment (2011) Cleveland is one of the markets that has been hit especially hard by the economic downturn, because of its dependence on manufacturing and the automotive industry. With the foreclosure listings currently exceeding the listings of normal homes for sale, values in Cleveland are expected to be under pressure... Read more »
Published 03/14/11