Tuesday, November 18, 2008

Apartment Investments: Short Run Challenges Leading To Intermediate Term Financial Rewards

In the latest edition of Multi-Housing News, the chief economist for the National Multi Housing Council argues that there is no more important economic indicator for the apartment industry than the job market—not even with the current turmoil in the credit markets. 

Economist Mark Obrinsky concludes that while apartment owners should pay close attention to employment levels in their locality, he is optimistic two trends that should mitigate the effect of a downturn in employment:
  • the reduced outflow of renters buying houses, at least until house prices start appreciating a few years from now; and
  • demographics: aging baby boomers, and an increasing number of students, and minorities that prefer to rent.
While the short run may have some challenges [especially where unemployment levels are highest], the intermediate term looks bright.

Read the full article >>>