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follow Patrick 2018 May 22, 9:19pm
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Apartment landlords can no longer raise rents like they used to. So many new apartment units are opening that the percentage that vacancy is inching higher across the country.This year “will likely remain challenging for many landlords and apartment investors," says Victor Calanog, chief economist and senior vice president in the New York City office of data firm Reis Inc. ...All the new development is putting stress on the apartment sector. "Vacancies have been rising since late 2016 as a veritable avalanche of new supply (a record high for some areas) works as a counterbalancing force," says Calanog.
In spite of the overbuilding
Commercial/Multifamily Debt Growth Largest Since RecessionMultifamily and commercial mortgage debt grew by $44.3 billion in the first quarter of 2018, a quarter-over-quarter increase of 1.4 percent, and the largest gain since before the Great Recession. The total debt at the end of the quarter was $3.21 trillion with the multifamily portion increasing by 19.3 billion or 1.5 percent. It was the third straight quarter that overall debt grew, the first time that has occurred since 2007.