What does everyone think is going to happen to apartment owners. I understand this forum is about SFRs but apartments do tie into housing. I heard that they are overpriced as well, but there is a slight shortage of apartments. Plus a drop in housing prices will bring a lot of renters.
Yes, we have discussed this in the past. It is an interesting situation. On one hand you have owners, trying to get as much as possible for their rentals, but on the other, salaries simply don’t command the rents they’re asking.
A lot of the condos I see on Zip have turned to rentals now on Craig’s list. The owners use the same photos! I know a lot of them must be losing a lot of money on their rental every month. There is no way $1600 for a one-bedroom in a new complex is covering someone’s mortgage, unless of course they had a big chunk to put down.
As for complex owners, I’m sure it’s a nightmare being a landlord. No wonder so many converted to condos – “let the renters take on their own problems,” is probably what a lot of owners thought!
I don’t have any data to substantiate this, but I have a hunch that a lot of the owners of apartments in SD County are old money…that they bought them a while ago, at least before this latest bubble. In these instances they don’t have a huge mortgage payment and don’t need to charge top dollar in order to turn a profit. Of course they want to charge as much as they can get away with, but they know there is value in keeping clean, responsible renters who pay on time.
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