When considering the state of Phoenix, AZ real estate and Scottsdale real estate, it’s impossible not to take into account the recent Arizona immigration controversy. The boycotting of Arizona is big news right now and one can’t help but wonder how this is affecting the state and major cities.
Arizona’s new law states that local and state authorities have the right to determine the status of suspects they believe to be in the country illegally. The passing of this law has caused various businesses to boycott the state. Several inns and hotels have reported a drop in prospective tenants and many stores on Nogales now close early. Some other U.S. cities (not to mention Mexico) have even banned travel to Arizona.
Is there any good news on the horizon? Financial experts predict that the effect on real estate and business will be largely short-term. Elliott Pollack, president of Elliott D. Pollack & Co. says that boycotts “essentially blow over, either because the issue was settled or people just forget about it.”
In fact most of the cancellations, suggests Arizona Hotel and Lodging Association spokeswoman Kristen Jarnagin, are due to people wanting to “stay out of the controversy” rather than make a statement. Although the Phoenix Arizona homes industry expects to lose $90 million during the next five years, many officials are starting to make amends with tourists.
Recently, the local Chamber of Commerce launched a campaign to promote its businesses in Mexico. Realistically speaking, the losses of Arizona’s real estate companies are good news for travelers who are still willing to travel to the Copper State for their vacation or business meeting. Many hotels, which now are aching to fill their schedules, are offering lower rates and discounted stays.
While the boycotts will affect the real estate industry in the short-term, Arizona’s outlook remains stable. Remember that Arizona, as its own entity, has the 61st most lucrative economy in the world according to the CIA World Fact Book. Arizonians remain confident that the Copper State can recover from this setback.
Arizona real estate has certainly taken a hit in the past few years. I feel its a great time to buy for the savvy shopper. I have to say im not too sure how much the recent immigration bill is going to effect homes like these other than perhaps in the building process. Lets hope these boycotts come to an end soon and this bill is repealed!
I don’t see the immigration bill really effecting the market here at all… There are a lot bigger problems then that facing the market.. I Think there has been a lot of hoopla about the boycotts and bans but think its very political driven. When you get down to the numbers, close t0 75% of people favor the law. Regardless lets hope the boycotts end and we can start focusing on the banks and how to clean up this mess we are in.