As much of the real estate market is warily watching the subprime fallout and steady interest rates in the face of rising inflation, the multifamily market is rejoicing in it, according to the University of Southern California Casden Forecast. "Stricter lending standards following the subprime mortgage meltdown are causing many potential homebuyers, who now face a larger downpayment and higher monthly payments, to find renting more affordable," said Delores Conway, director of the Casden Forecast. "Strong investor interest and favorable long-term interest rates should help sustain sales activity of apartment buildings in all markets even as more units are being built." While rising apartment demand in much of Southern California bumped up average monthly rents to $1,470 in Los Angeles County, $1,472 in Orange County and $1,036 in the Inland Empire, keeping it an attractive target for the abundant capital looking for a real estate play, the panelists at the forecast event held April 4 in Los Angeles highlighted a few trouble spots to watch in 2007.
June 1, 2007