The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success
  • Please Leave the Politics to CNN and FOX.
    Just a reminder that political topics/memes are prohibited, unless discussed within the realm of business and investment, for example, the impact the new Treasury Secretary might have with BTC. Please help keep the forum free of politics. (And I promise to do better myself!)
  • Join 60,000+ entrepreneurs who are earning their freedom and living their dream.

    "Fastlane" is an entrepreneur discussion forum based on The C.E.N.T.S Framework outlined in the two best-selling books by MJ DeMarco (The Millionaire Fastlane and UNSCRIPTED®). From multimillionaires to digital nomads to side hustlers who are grinding a job, the Fastlane Forum features real entrepreneurs creating real businesses with one goal in mind: Freedom— both financial and temporal.

    Download (Unscripted) Download (Millionaire Fastlane) Register
    Registering for the forum removes this block.

REAL ESTATE Apartment building market tanks?

Remove ads while supporting the Unscripted philosophy...become an INSIDER.

Sid23

Bronze Contributor
Speedway Pass
Aug 9, 2007
697
162
81
What would the world have to look like for the apartment building market to become undesirable?

Other than sky high interest rates (which would make capital hard to obtain, however, would probably cause the number of renters to rise), what types of things does one have to be aware of?

With changing demographics, it seems that there will always be at least 1 market in the US that would make sense to invest in...

I suppose a full-out recession where people are not moving and squeezing 10 people into a unit would be a bad time...

Interested to hear people's thoughts....
 

Don't like ads? Remove them while supporting the forum. Subscribe.

JScott

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
Aug 24, 2007
4,625
10,279
2,451
If the following were to happen in every major market:

- Interest rates drop
- Housing inventory increases
- Housing prices collapse (related to above)
- Population decreases
- Incomes rise

then you would have the possibility of the apartment market collapsing.

Of course, that combination of scenarios doesn't make much sense in any realistic scenario (it would have to be really contrived).

That said, some portion of those scenarios certainly plays out in individual areas, and can/does negatively impact the apartment market in those areas.
 

SteveO

Legendary Contributor
EPIC CONTRIBUTOR
FASTLANE INSIDER
Summit Attendee
Speedway Pass
Jul 24, 2007
3,919
16,876
3,254
You certainly want to hedge your bets by looking to areas that will have less impact if the economy goes into a recession. There are risks to anything. I had to hunker down during the last slowdown and did not spend as much money on the properties that needed to be spent. When the economy got better, I started spending again. Apartments were on sale during that time and I bought a bunch.
 

Sid23

Bronze Contributor
Speedway Pass
Aug 9, 2007
697
162
81
If the following were to happen in every major market:

- Interest rates drop
- Housing inventory increases
- Housing prices collapse (related to above)
- Population decreases
- Incomes rise

then you would have the possibility of the apartment market collapsing.

JScott, you are saying "all of those things" must happen for the apartment market to crash? It would take that many things?

I had to hunker down during the last slowdown and did not spend as much money on the properties that needed to be spent. When the economy got better, I started spending again.

What did the world look like during the last apartment slowdown?
 

JScott

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
Aug 24, 2007
4,625
10,279
2,451
JScott, you are saying "all of those things" must happen for the apartment market to crash? It would take that many things?

For there to be a *crash* in the apartment market, I imagine a lot of extreme circumstances would have to conspire at the same time. Because of a number of things (less liquidity, no vacancy correlation to credit markets, more professional investors, etc), it seems unlikely that the right circumstances would occur on a national level to cause a full-fledged crash in the apartment market.

But again, there are cycles in the apartment market just like the rest of the real estate market, and you'll certainly see localized downturns that resemble (or may even be) crashes. I just don't imagine it happening on a national scale.

Now, all that said, there are others on this board that probably have much more insight and experience than I do, so I'd love to get their opinions as well...
 

Sponsored Offers

  • Sticky
MARKETPLACE Fox Web School "Legend" Group Coaching Program 2021
Yeah, your youtube channel is incredible and all the videos I have seen so far are really great...
  • Sticky
FEATURED! Introducing... WEALTH EXPO$ED, A Short Story By MJ DeMarco
Finally! I just launched a short story on Kindle (FREE if you have Kindle Unlimited)! After...
  • Sticky
MARKETPLACE You Are One Call Away From Living Your Dream Life - LightHouse’s Accountability Program ⚡
I planned to make a separate post for this video but it is useful here as well for anyone...
  • Sticky
MARKETPLACE Lex DeVille's - Advanced Freelance Udemy Courses!
Last promo of the year.. Get the training you need now or miss it. Promo Code: FINALHOUR...
  • Sticky
MARKETPLACE Kill Bigger Incubator
UPDATED POST: Hey Guys! I wanted to give a quick update on what this program has become. In...
  • Sticky
MARKETPLACE Grow Your Business With a Book (An Unorthodox Marketing Strategy That Built One of the Largest...
Are you looking for a new, lesser-known but potentially very lucrative source of leads to your...



Forum Sponsor

sponsor

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Monthly conference calls with doers
Ideas needing execution, more!

Join Fastlane Insiders.

Top Bottom