on 1/21/02 9:24 AM, Craig Miller at [EMAIL PROTECTED] wrote:

> Was I the only one who noticed the rental vacancy rate has gone from 2.1% to
> 4% in just one quarter? And that figure is going to keep climbing.
> <snip>
> The affordable housing crisis has passed.

Craig, let me play devil's advocate here...I just did a story for this
week's Skyway News (www.skywaynews.net), on the 4th-quarter 2001 Downtown
apartment market.

The story is rising vacancy rates...but no falling prices, yet. Apparently,
for a little while anyway, landlords are willing to tolerate a higher
un-rented inventory rather than offer long-term rent breaks...they, like
many investors, are betting the post-9/11 dip is shallow and quick.

I worry that some are making a mistake equating rising vacancy rates with
the end of the affordable housing problem. I'm pretty sure if vacancies
persist, prices will come down...however, will they come down enough to put
enough rental housing into the "affordable" category, either by metro/city
median or 30% of gross-income measurements?

I suspect a lot of what's happening is those who can afford
higher-than-affordable rents - the kind I used to pay - are getting the big
big break right now.

Anyway, I need price data, not just vacancy data, to declare the crisis
over.

David Brauer
King Field - Ward 10 


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