Surging Demand for Apartments Gives Boost to Nation's Apartment LandlordsThu, 2012-05-10
In the aftermath of the worst housing crisis in a generation, more people are eschewing the American dream of homeownership and embracing apartment rentals in the still-fragile economy.
Surging demand for apartments, particularly by younger consumers, has given a boost to the nation's apartment landlords. Multifamily properties represent one of the few corners in the commercial real-estate industry where rents are rising rapidly. As such, lenders are giving the green light to multifamily construction projects even as development grinds to a halt in other property sectors.
"People weren't buying homes anymore, but they still needed shelter," says Tom Mitchell, the Miller Tabak & Co. analyst who claimed the No. 1 spot in the Best on the Street survey's real estate category. "This created an imbalance that is still going on, where apartments are still able to raise rents," says Mr. Mitchell, 68 years old, who has been a stock analyst for almost 40 years and has covered real-estate investment trusts for Miller Tabak since 2006. "You don't see pricing power like that in other areas of financial services."
Excerpt from the article "Real Estate" written by A.D. Pruitt featured in the May 10, 2012 Wall Street Journal. Click here to view the original article in its entirety. Back to article index