Memphis Occupancy Rates, Rents Trend Higher, Say Apartment Managers
Tom Bailey, Jr., Memphis Commercial Appeal
May 29, 2011
Thanks to declining home ownership, says the Commercial Appeal, apartment occupancy rates in Memphis are running 95-97%. The CA also points out that incoming employers such as Electrolux and Mitsubishi are expected to bring 5,000 new jobs to the area over the next five years, creating additional rental customers. (While Brookfield focuses on single-family rental properties, the article points out that there is little new apartment construction to handle the increase.) Click here to read the full article on CommercialAppeal.com.
Survey: Next Two Years Is Prime Time for Real Estate Investors
May 26, 2011
A survey of 200 real estate investors by Realtor.com showed strong optimism about the current market. Nearly two-thirds plan to purchase additional investment property over the next five years, with a full one-third planning to buy in the next two years. According to Steve Berkowitz, CEO of Move, Inc. (operators of Realtor.com), "This data suggests today's climate is hot for investing and is attracting a lot of new people that don't fit the stereotypical deal-driven flippers who buy and sell properties quickly." In fact, 59% of those surveyed identified themselves as new to property investment, and 63.5% had had experience with only one investment property transaction.
Troubled Home Market Creates Generation of Renters
Derek Kravitz, Associated Press Real Estate Writer
May 24, 2011
According to the Associated Press, the percentage of home ownership in the U.S. is the lowest since 1998. The economic downturn has resulted in nearly 3 million additional rental households, and that number is expected to double by 2015. Most importantly, says the AP, "demand is driving up rents," with a median increase of more than 4% from 2009 to 2010. Another factor favorable for property investment is the reduction in home prices coupled with mortgage rates that make it cheaper to rent than buy. Click here to see the full article on ABCNews.com.