With a surge in rental applications coming from foreclosures and compromised credit histories, property owners may feel some pressure to lower their credit standards. This trend is also compounded by the glut of condo conversions expected to come back online as rental properties in the overheated or overdeveloped markets. As a result, despite the uptick in rental housing activity, owners will find themselves competing for qualified tenants. This could have an overall negative impact on apartment occupancy rates going forward.
Source: Sperry Van Ness/RealSite Commercial Group