U.S. apartment vacancies near all-time high

Quote from Stimulus:

Right, those taxes are passed through to the tenant in additional rent.
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have you really only made 9 posts since 04.
 
Quote from Landis82:

Why would you find such an article so informative?

It simply states the OBVIOUS that there is far too great of a supply of apartment units out there, just as there are far too many auto dealers out there.

Shocker.
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While I saw a lot of new contstruction, it would be foolish to draw conclusions on small sample of data. Thin slicing does not always work. This article provides more data points and thus is useful.
 
Quote from Landis82:

More cut and paste.

:(
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Here's something I wrote in April for L.A. Curbed. I asked to be anonymous-"Money Guy" is born, lol.

It was bad enough a year ago when resale prices were stretched compared to rental rates (p/e so to speak) but what's happened since? Rentals have weakened-which by the way is counter intuitive to the conventional wisdom argument that states former homeowners would then crowd the rental market. Hasn't happened. My best guess why the absence is because of unemployment.

http://la.curbed.com/archives/2009/04/a_money_guy_on_why_its_a_bad_time_to_buy.php
 
Quote from Landis82:

.....And by the way, in the United State of America . . . renters do NOT PAY property taxes.

Duh.
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This ain't exactly correct. You bet they're paying taxes. Most apartment renters are just too damn stupid to know it.
 
I am apartment hunting in Miami right now and the sales people tell me they are getting absolutely killed... on south beach (you know, one of those places where there is eternal local, domestic and foreign demand and a large ever renting "transient" population beside the high income interests).
 
lovely property lovers...

property (not land part ) is just another consumable. owning it, is financially stupid and gets you in lifetime of financial misery. Land part will probably keep with inflation, so i guess its ok.

do your math. excel really good. Assume 3% depretiation a year for house part and enjoy the projections ..
 
"For example, in New York, the largest U.S. apartment market, vacancies fell 0.5 percentage points to 2.9 percent, despite a 1.7 percent decrease in rent to $2,679 compared with just the prior quarter and a 4 percent fall compared with last year."

this sentence makes no sense. what was the author trying to say?
 
Of course they are. Everone has taken the low Mortagage rates and the $8-15K first time buyer credit and moved into homes that I sold them...that I bought when guys like the OP were squealing about the end of the world.

Quote from ByLoSellHi:

http://www.reuters.com/article/GCA-Economy/idUSTRE5670KD20090708

U.S. apartment vacancies near historic high: report
Wed Jul 8, 2009 6:23am EDT

By Ilaina Jonas

NEW YORK (Reuters) - The vacancy rate for U.S. apartments reached its highest level in more than 20 years in the second quarter and could soon exceed record highs if the recession persists, real estate research firm Reis Inc said.

The national vacancy rate rose to 7.5 percent, the highest since 1987 and an increase of 1.4 percentage points from last year, according to a report Reis released on Wednesday. The record high was 7.8 percent in 1986.

"We are reaching that historic high very quickly," said Victor Calanog, Reis director of research.

The second-quarter vacancy rate was 0.20 percentage point higher than the prior quarter and up from the cyclical low 5.5 percent reached in 2006, Reis said.

The U.S. recession has taken a toll on the U.S. apartment market, which largely relies on employment growth to fuel demand. Its largest tenant group, 18- to 24-year-olds, has been hardest hit by rising unemployment. Meanwhile, the apartment buildings sector has led all commercial real estate categories

on loan defaults.

Second-quarter asking rent fell 0.7 percent from a year earlier to $1,040 a month, and 0.6 percent from the prior quarter, the largest single quarterly decline since Reis began tracking quarterly data in 1999.

When free months of rent and other incentives landlords are using to lure tenants are factored in, effective rent was down 1.9 percent from the prior year and 0.9 percent from the first quarter to $975, Reis said.

"If you're a landlord right now at least you're recognizing that things are tough," Calanog said.

To maintain occupancy, many landlords, including Equity Residential, Apartment Investment and Management Co, AvalonBay Communities Inc and Mid-America Apartment Communities Inc, have sacrificed rental income and boosted concessions.

For example, in New York, the largest U.S. apartment market, vacancies fell 0.5 percentage points to 2.9 percent, despite a 1.7 percent decrease in rent to $2,679 compared with just the prior quarter and a 4 percent fall compared with last year.

"It's very clear there's some leasing going on, but it's coming at the cost of a whole lot of concessions offered," he said.

In other areas, such as Las Vegas, San Francisco and San Jose, California, effective rents dropped more than 2 percent from the prior quarter.

Nationally, the picture may grow worse as the year progresses as Reis expects more than 100,000 units from new construction to come onto the market by the end of the year. Some 47,000 units have already come on line this year.

"With general expectations of an economic recovery pushed back to early 2010 at the earliest, it seems likely that apartments will have to endure a few more quarters of distress, lower rents and higher vacancies," Calanog said.

(Reporting by Ilaina Jonas; Editing by Steve Orlofsky)
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Quote from Landis82:


And by the way, in the United State of America . . . renters do NOT PAY property taxes.

Duh.
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Typical Leftist ignorant thinking.....Just like National healthcare will save money.....Taxing the rich will increase revenue.

Unless a cost is itemized to a Liberal it is not a cost.

You have been Obaminized!!!
 
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