Feb
26

Nearly 50% of Apartment Landlords Lower Rents

By
– National Real Estate Investor

The deterioration in apartment asking rents reached unprecedented levels in the fourth quarter of 2008. Almost half of multifamily properties in the U.S., or 48.6%, reported declines, according to New York-based research firm Reis. If the rise in concessions were factored in, the percentage of properties decreasing rents would be well over 60%.

“You’ve got a high vacancy rate of single family homes. If the owner still owns it and it hasn’t been foreclosed, they’re renting it out,” says Victor Calanog, director of research for Reis. “You’ve got competitive property types like condos in South Florida. It’s the shadow inventory story. You’ve got an overall weakness in demand, plus the fact that there’s shadow inventory fighting with standard multifamily property now that’s really putting a lot of pressure on landlords.”

ARTICLE SHORTENED DUE TO LENGTH….


LINK TO ARTICLE HERE:
http://nreionline.com/news/apartment_landlords_lower_rents_0224/

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