While Real Estate Investment Trusts (REITs) have had a tough time in the market as of late, they do have some good news to share. This may not come as a surprise, but the number of renters leaving to buy homes has dropped significantly.
In the case of Camden Property Trust, they saw renters moving out to buy a home drop from a peak of 24% in 2004 down to 13.6% in Q3, 2008.
United Dominion Realty Trust (UDR) say move outs due to home ownership dropped from 15.5% in Q3, 2007 to 13.1% in Q3, 2008 and AvalonBay Communities saw fewer than 20% of it's residents move outs due to home ownership.
The situation with AvalonBay Communities is especially noteworthy since they deal in A class luxury rental properties where upscale renters can often easily get financing to purchase a home.
In the case of Camden Property Trust, they saw renters moving out to buy a home drop from a peak of 24% in 2004 down to 13.6% in Q3, 2008.
United Dominion Realty Trust (UDR) say move outs due to home ownership dropped from 15.5% in Q3, 2007 to 13.1% in Q3, 2008 and AvalonBay Communities saw fewer than 20% of it's residents move outs due to home ownership.
The situation with AvalonBay Communities is especially noteworthy since they deal in A class luxury rental properties where upscale renters can often easily get financing to purchase a home.
"Home ownership is at historical lows," says Christopher Wimmer, a vice
president and senior analyst for New York-based Moody's Investors
Service. "People are worried about the economy and their jobs, and they
don't see [buying a home] as a good idea at this point."
According to Citigroup Global Markets, REITs did grow in Q3 with same-store Net Operating Income averaging 2.8%.
Further increasing the barriers to homeownership, the National Multi Housing Council (NMHC) and National Apartment Association (NAA) Joint Legislative Program both oppose the proposal for a $22,000 homebuyer tax credit.
"We understand the desire of lawmakers to bolster the economy and stem the tide of foreclosures," says Doug Bibby, NMHC President, "but new homebuyer tax credits, seller-financed down payments and interest rate buy downs will not stimulate the economy or stop house prices from falling further. They are simply bailouts for the for-sale housing market, the very sector of our economy that helped trigger the global economic crisis."
Regardless of the reason for move-outs, this time of year is historically the most difficult for move-ins.
Move-outs at this time of year are more likely to leave units vacant longer because people are not actively seeking apartments. "It is harder to lease units during the holiday season," Greg Mutz, CEO of AMLI Residential says. "The simple fact is that leasing velocity historically declines from Thanksgiving through the first week in January. There is no magical formula to fill units during the holiday season."
Despite the slower time of year, it is still possible to perform successful lease ups which we did during this time of year on a Michigan property and are doing right now in one of our Texas properties.
Our Portfolio now has over 800 units and you might be surprised to learn that you may know some of our investors as they're readers just like you partnering in our deals with cash or self directed IRAs.
According to Citigroup Global Markets, REITs did grow in Q3 with same-store Net Operating Income averaging 2.8%.
Further increasing the barriers to homeownership, the National Multi Housing Council (NMHC) and National Apartment Association (NAA) Joint Legislative Program both oppose the proposal for a $22,000 homebuyer tax credit.
"We understand the desire of lawmakers to bolster the economy and stem the tide of foreclosures," says Doug Bibby, NMHC President, "but new homebuyer tax credits, seller-financed down payments and interest rate buy downs will not stimulate the economy or stop house prices from falling further. They are simply bailouts for the for-sale housing market, the very sector of our economy that helped trigger the global economic crisis."
Regardless of the reason for move-outs, this time of year is historically the most difficult for move-ins.
Move-outs at this time of year are more likely to leave units vacant longer because people are not actively seeking apartments. "It is harder to lease units during the holiday season," Greg Mutz, CEO of AMLI Residential says. "The simple fact is that leasing velocity historically declines from Thanksgiving through the first week in January. There is no magical formula to fill units during the holiday season."
Despite the slower time of year, it is still possible to perform successful lease ups which we did during this time of year on a Michigan property and are doing right now in one of our Texas properties.
Our Portfolio now has over 800 units and you might be surprised to learn that you may know some of our investors as they're readers just like you partnering in our deals with cash or self directed IRAs.
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