Apartment Rentals Down
This isn’t an area that I’d thought about until I read a recent news story, but it seems that apartment vacancies are down to their lowest rate in 23 years. That rate is 7.8%, which to me doesn’t seem all that high until you realize that apartments usually have people on waiting lists for vacancies, and that doesn’t seem to be an issue right now.
Apartment complexes are considered commercial property for the owners, as opposed to retail property for the renters, and suddenly this is another scary proposition we all have to think about. It was pretty much thought that many of the people who gave up their homes were renting apartments, but that doesn’t seem to be as much the case as people moving in with relatives because it cost less money. That, and the fact that more apartment complexes have begun checking credit reports (which is the sickest thing in the world to me) and refusing some people whose credit reports don’t fit their standards. I can understand that if your apartment is worth $2,000 a month, but for apartments $1,000 a month or less, that’s ridiculous.
The price for renting is also coming down. NYC apartment prices dropped 1%, but is still over $2,600 a month on average; that’s just ridiculous, but that’s NYC. Across the entire country, rent dropped .5%, to an average of $1,035 a month; still too high if you ask me. In this economy, where people are taking lower paying jobs to sustain themselves, you drop your profit margin somewhat and help people move into your complex if you’re having problems getting new renters in the door. I know the question; what about the people already living there. Find a way to give them a bonus or benefit. Be creative; just get it done.
Because, if you don’t at least have enough people so you can make your mortgage payment the rental problems will be solved because many apartment complexes will close, and people will be forced to move to other apartments. But I don’t think anyone wants to see it solved that way.