davidbdc

Are We Becoming a Nation of Renters? Investing for the New Housing Dynamic

A lot of good comments. I'm not sold that the apartment reits are a great value. I do agree that MAA seems to be solidly run and it does pay out a 5% dividend.....if it goes below $40, maybe closer to $35 then I would agree its a good buy.

But I don't believe that people really have any interest in renting in apartment communities....they are just there for a period of time before moving off to something better, or as the article points out on to the next job.

And one thing that I see happening more and more is that people are renting out parts of their houses......I myself spent 3 years renting a converted basement when I was younger. So even though I agree with the premise that younger people are going to be less likely to buy as soon as they can......I don't think it equates with more demand for apartment communities.

And the other thing that isn't mentioned is that apartment renters are more likely to be in the type of jobs that have been hard hit in this recession. Less of them are college educated. When people lose their homes they now are usually in the position of being unemployed and they won't be able to move into an apartment - its off to friends or relatives. For those with families that still have income they will try to move into some type of house to keep continuity for their children...apartments would be a last choice.

Of all the choices, I think buying a big old house with multiple bathrooms and renting out rooms to early 20 somethings is the best bet. Find something for 100K and get 4-5 renters at $400 per month and your in business.