Andre Shashaty, Editor
ashashaty@hanleywood.com

Apartment owners and developers generally see positive things coming out of the ongoing subprime home mortgage mess. They are not happy to see so many homebuyers lose their homes, but they are pleased to see that their tenants are no longer moving out in order to buy a home using high-risk mortgage loans. As one developer told me, until the crisis, it was easier for a family to qualify for a home mortgage than to qualify to lease an apartment. The ripple effect from failed home mortgages has roiled the capital markets, cutting the availability of financing for apartments, driving up rates, and reducing loan proceeds. But owners believe that will have the positive effect of shutting down the craziest and most reckless deal-making. On the other hand, they know that a recession is a real threat, and if a downturn doesn’t drive down occupancy and NOI, there’s a good chance that inflation will heat up and drive interest rates back up. Get all the details on what to expect in 2008 from APARTMENT FINANCE TODAY’S January issue. Look for my forecast for the capital markets, and let me know what you think.