Today is all about beauty and health, but I'm going to slip this one in because I find the topic fascinating. Boys and girls, take comfort in knowing your sorrow and misery is someone else's gain. Not everyone is having a down economy. I'm talking about the apartment millionaires; those that own and build, along w/the many that live in the apartments.
Wherefore art thou?? The blog title came to me as I listened to the data from the latest report on housing in the US. It mirrors the plight of non-cave dwellers everywhere: falling prices and foreclosures are great for deep-pocketed investors and new home buyers (e.g. those young and employed). The unemployed are busy moving out of their foreclosed homes and searching around for apartments. As a result, a book in the apartment construction world is occuring.
"I have two friends with hundreds of millions of dollars in the bank--cash--" he emphasizes, "that are building as fast as they can." This was a 30 year real estate veteran, referring to the boom times in apartments. During times of plenty, singles will move out of their parent's homes, graduate from college, get a job and aspire to purchasing a home (or at least a condo). Immigrants follow the same pattern. Two or three generations will huddle together in a small home until family members start to leave the nest to their own single family dwelling.
"This will last three, maybe four years," the expert continued, "until year 5 where we will have a glut of apartments. By then, the recession may be over, families will start to move back in to single family homes and then new building will start again."
Okay, developers are making money, so are the storage companies that take care of the goods when a family moves from a home to an apartment. Wise storage unit CEO's are already banking money for their own down-cycle, which should happen in that 5 year range--when customers retreive their dusty, stinky stuff (and will probably junk half of it to buy new stuff).
The other phenomena is the number of folks who are millionaires--at least on paper--that can no longer afford their home and now live in apartments. This includes middle age professionals who bought at the top of the market, sold at the bottom, have lots of money tied up in underperforming mutual funds, stocks, CDs, and yes, even real estate. Why sell and take a huge hit, when....if...eventually...the value of all will once again rise? In the meantime, certain wise folks (many who are in fact employed) made a conscious, proactive decision to sell their home before it was foreclosed upon, thereby saving money. And by the way--have you seen some of these apartments? They are sweet. It's a good thing I think that, for I may be spending a lot more in apts in the future.
Wherefore art thou?? The blog title came to me as I listened to the data from the latest report on housing in the US. It mirrors the plight of non-cave dwellers everywhere: falling prices and foreclosures are great for deep-pocketed investors and new home buyers (e.g. those young and employed). The unemployed are busy moving out of their foreclosed homes and searching around for apartments. As a result, a book in the apartment construction world is occuring.
"I have two friends with hundreds of millions of dollars in the bank--cash--" he emphasizes, "that are building as fast as they can." This was a 30 year real estate veteran, referring to the boom times in apartments. During times of plenty, singles will move out of their parent's homes, graduate from college, get a job and aspire to purchasing a home (or at least a condo). Immigrants follow the same pattern. Two or three generations will huddle together in a small home until family members start to leave the nest to their own single family dwelling.
"This will last three, maybe four years," the expert continued, "until year 5 where we will have a glut of apartments. By then, the recession may be over, families will start to move back in to single family homes and then new building will start again."
Okay, developers are making money, so are the storage companies that take care of the goods when a family moves from a home to an apartment. Wise storage unit CEO's are already banking money for their own down-cycle, which should happen in that 5 year range--when customers retreive their dusty, stinky stuff (and will probably junk half of it to buy new stuff).
The other phenomena is the number of folks who are millionaires--at least on paper--that can no longer afford their home and now live in apartments. This includes middle age professionals who bought at the top of the market, sold at the bottom, have lots of money tied up in underperforming mutual funds, stocks, CDs, and yes, even real estate. Why sell and take a huge hit, when....if...eventually...the value of all will once again rise? In the meantime, certain wise folks (many who are in fact employed) made a conscious, proactive decision to sell their home before it was foreclosed upon, thereby saving money. And by the way--have you seen some of these apartments? They are sweet. It's a good thing I think that, for I may be spending a lot more in apts in the future.










