Good Times for Landlords or History Repeats Itself

Falling home prices and lethargic sales have been bad news for homeowners, but a boost for one group of real-estate investors: apartment-building landlords, the Wall Street Journal says.

For example, Lindsey Neiling, a 23-year-old Chicago resident, will pay $765 instead of $720 for her studio apartment. “They know they can get more for my unit,” she said.

“With millions of families switching from being homeowners to renters, apartment-building values have soared,” the story says. “Investor demand is so intense, prices of some properties are approaching values last seen in mid-2007.”

So, lets make an excursion to the past. I mean the article in The New York Times dated September, 17 2006. Here are some extracts which speak for themselves:

“Landlords are enjoying booming times these days as more people are choosing to rent.”

“Fewer people have been eager to buy homes lately, in light of lofty prices and higher mortgage rates. What is more, industry analysts say, the supply of rental units is tighter, partly as the result of the conversion of rental apartments to condominiums at the height of the housing surge. And demand is intense as the children of the baby boomers, sometimes called the “echo boomers,” move out on their own”.

“DEMAND remains strong because of the high prices for condos and houses. Even those who could afford to buy are finding more value through renting right now.”

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