justoffal
Diamond Member
- Jun 29, 2013
- 26,157
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Well I don't think anybody saw this coming.... Locally ( never mind where) I've been watching the real estate market waiting for the Multi-family bubble to burst....prior to the pandemic the investor demand for these properties pushed the pricing up to almost $150.00 per square foot....totally insane for the economic bracket that makes up this area. I thought for sure that the eviction moratorium would drive this market down....but nope. What has happened instead is the near complete disappearance of the Rental market. As the apartments go empty the landlords renovate and then simply lock it up with no intentions of re-renting any time in the near future. One of the local property hounds here funded by streams of foreign investment money takes the empty places and turns them to condos....huh.....never thought I would see that happen because it didn't make any sense in the pre-pandemic market. So I have noticed a growing list of multi families languishing on the market right now with very few offers coming in from anyone except for the big investors ( I am assuming ) who can take the hit of a non paying tenant while they wait for the apartment to go empty. So what has happened is the worst case scenario for the local market....not only are the rentals virtually gone...what used to be a decent deal for a decent apartment is also gone. With the renovations the individual units are going for as much as $200-$250 per square foot to buy and own....not to rent..... while the streets begin to fill up with homeless people...many of whom hold regular jobs to boot.
Hey Big Government! Smart move bowels!
JO
Hey Big Government! Smart move bowels!
JO