Tuesday, April 03, 2007

U.S. Apartment Rents Increase 1% in quarter

The WSJ has a blurb that in the 1st quarter apartment rents went up 1%.

What caught my eye:
The numbers show apartment owners continue to benefit from weakness in the for-sale housing market, as would-be homebuyers wait out possible further declines in house prices. Sam Chandan, Reis's chief economist, says apartment owners will benefit even more as the tightening of subprime lending closes the door to many first-time homeowners who are currently renters.

Umm... yea. I'll be competing with people with poor credit. You sure people won't wait it out in new areas? Spare bedrooms in Mom and Dad's McMansion?

Also, let's see... that is about 5% inflation YOY assuming wages do well. What assumption do you make on wages? I'm not expecting much of a rent increase in 2008.
The article (requires subscription):
http://online.wsj.com/article/SB117565112287059207.html?mod=todays_us_marketplace

Got popcorn?
Neil

1 comment:

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