-----Original Message-----
From: Gregory Luce [SMTP:[EMAIL PROTECTED]]
Sent: Monday, December 17, 2001 1:55 PM
To: Mpls Forum
Subject: Re: [Mpls] Vacancy rates, rents, economic indicators......
Yes, you are reading the landlords responses differently.
There are to many apartment projects waiting in the wings for
huge subsidies.
At a cost of $120,000. to $255,000. per unit, the cost of $120,000. will
require $916.26 dollars per apt unit, per month, just to pay the
principal and interest on the $120.000. 25 year loan at 7.875%
This alone is far more than the private housing providers ask for rent.
If the news of the numerous vacancies stop the excess building,
then the private housing providers will have smaller tax increases
to pass along to their renters.
Mel Gregerson
Affordable Housing Provider
I also think it is way too early to make any conclusions, particularly
whether the "crisis" is over, whether the 1 & 2 bedroom vacancy trend
will continue, and whether the trend represents an improvement in the
rental market or whether it is attributable to something else, such as
the recession, people doubling up and taking roommates, etc.
Honest question for landlords on the list: I've noted a tone of
satisfaction among some landlords (not on the list) that there may in
some way be a lessening of the affordable housing crisis--with terms
such as "vacancy explosion" being used and so forth--but why the
satisfaction or excitement? Just curious as to how lessening of a tight
market benefits landlords who otherwise are getting high rents and
little turnover. Is it political satisfaction in some way? Or am I
reading the landlord response differently?
Gregory Luce
North Phillips (work)
Rosalind Nelson wrote:
> I think there's a serious point hidden in this, that being that the change in
> the rental situation could be due entirely to the recession and might not
> represent any real improvement.
>
> It is sickening to find out that some people find satisfaction when others lose
> jobs and have mortgages foreclosed.
>
> Rosalind Nelson
> Bancroft neighborhood
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