1 in 5 Tenets Struggle to Pay Rent

[John Nachtigall]

A very interesting article on rising rents

Bloomberg Article   https://www.bloomberg.com/news/articles/2017-10-26...

Actual Survey   https://www.apartmentlist.com/rentonomics/rental-i...

Some of the points I thought were interesting

-  Among households earning up to $30,000 a year, 27.5 percent failed to pay the rent in full in at least one of the past three months. Among those earning $30,000 to $60,000, it was 14.8 percent. Even of those making more than $60,000 a year, it was 8.8 percent.

-  Eviction rate is 5-6% in the "hottest" markets.   Memphis, Phoenix, Atlanta, and Indianapolis are sited over and over as great buy and hold places with strong job growth and reasonable prices.  

-  Households with children twice as likely to face an eviction threat, regardless of marital status

- the Map of the eviction rates across the country

- Their conclusion is 20% of renters struggle to pay rent.  

I am not qualified to understand the broader implications, but I would say it is evidence that rents have an upper limit and assuming you can buy and increase rents at a 5-7% rate every year is not a valid strategy.   I see that assumption in almost every multifamily syndication deal I have reviewed.

[Andy Rumple]

Where are the other 4 hiding? I'll take them.