The topic of Puerto Rico real estate after Hurricane Maria is a touchy one and one that even the government can’t answer adequately until more information comes in. The facts are that the housing market has fallen since Hurricane Maria, and is now at an eight-year low.
But some investors are looking at the flip side of this coin and seeing the advantages of a median home price drop of 15 percent as a good time to buy. Discover the truth about Puerto Rico real estate right here, and find out if it is worth it to invest in this volatile market.
Is There a Market for Puerto Rico Real Estate?
There is no question that there is a market for investors in Puerto Rico real estate. Prices are dropping with the average home price hovering around the $116, 750 mark.
This trend is adding to the existing trend of the market, as Puerto Rico real estate was already on a downward trend before the 2017 Hurricane Maria.
But even when the market is down, interest is up, with more Americans looking to invest.
Online searches for Puerto Rico homes went up during and immediately after Hurricane Maria. More Americans are looking to invest.
This means that even if the market looks soft with a lot of vacancies and fewer renters, there is still a market for savvy investors today.
As is always the case with real estate, location is everything. The same concept applies to Puerto Rico.
Some towns of Puerto Rico were hit harder by Hurricane Maria than others. In Humacao, home values dropped from $250,000 to $97,250.
In San Juan, home prices dropped as much as 50 percent.
But in Rincon, a hot tourist destination, home prices only dropped 4.3 percent. With prices still dropping, this tourist destination that is seeing growth in the economy since Hurricane Maria could be something investors want to look into.
Before you do, check out the 3 things you need to know about buying a vacation home.
Do Your Market Research
In any economy, market research is integral to a good investment. This is the case whether you are buying in a good economy or one that is struggling.
When home prices are dropping, the only way to stimulate the economy and promote growth is to contribute to the solution.
This is exactly the problem that Puerto Rico is facing now.
Other economies like New Orleans or Houston after hurricanes like Hurricane Katrina and Hurricane Harvey were thriving before their storms. Even with these being among the largest national disasters in history, the cities have bounced back and are thriving today.
Puerto Rico is a little bit different because it wasn’t thriving before the storm, and the storm has put the island back about eight years.
But the only way it can bounce back is through growth. And that growth comes from real estate investors.
Use information hubs such as Strong|Edge Realty to get the information you need to reach your real estate goals.
Invest While the Market is Soft
A report by HUD, the Housing and Urban Development office of the government notes the soft market of Puerto Rico, with vacancies on the rise. This was a trend even before Hurricane Maria.
Some job sectors are seeing lower employment as well, and this could dissuade potential investors. But some sectors of industry are growing in employment, such as the government sector which is also responsible for the school system and the government sector is the largest job market in Puerto Rico.
Those teachers and government workers need to live somewhere. As do the multiple farm workers in Puerto Rico.
But even if you want to invest for a vacation home, now is a good time to do so while the market is soft. Find out if you can get a loan for real estate investment, and make a financially lucrative choice today with Puerto Rico real estate.