Archives for August 2011

New Kids on the Block

The Other Side of the Coin

If we had a nickel for every article written about the Baby Boomer generation, we would most likely be living in the Caribbean sipping umbrella drinks and thinking about an afternoon nap. The ubiquitous Boomers have influenced modern America like no other generation and continue to do so as they move into retirement. As we have noted before, Baby Boomers will have a significant impact on apartment investing as they are now moving into a stage of life when they are more likely to become renters and remain that way for the rest of their lives.

But for apartment investors looking to capitalize on demographic trends, the Baby Boomers are only half the story.

Is there an Echo in here?

There is a second generation of Americans not as frequently mentioned but just as impactful on the future of housing in America, specifically in the apartment sector. The mainstream media might not be talking about them as much as their older counterparts (yet), but apartment investors should pay heed to this new generation. They are called Echo Boomers and they are just now entering the housing market. Industry experts predict that 15 million Echo Boomers will enter the prime “renter age” of 18-34 this decade.

The Echo Boomers are coming and they are going to be staying for a while.
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Texas Triangle Presents a Historic Opportunity

Not All Lists are Created Equal

If you want to be successful apartment investor, selecting the right market is one of the most crucial decisions you will make as you manage your portfolio.

Each year, we see just about every major publication release it’s version of the 10 best cities for.. .(fill in the blank) and then watch as inexperienced real estate investors flock to these areas in search of the next great opportunity.

Truth be told, these lists drive us crazy.

Frequently, the methodology used for these splashy rankings is never disclosed, or worse, uses metrics that are worthless to the careful apartment investor.
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A Tale of Two Storms

The Wall Street Thrill Ride

The last few weeks have been the worst kind of roller coaster for an investor with money in the stock market. Wall Street is seeing several factors influence trading and none of them are good. Debt crises are spreading across Europe, political dysfunction seems to be reaching new lows in Washington and the first ever downgrade of  U.S. credit created what one analyst called “a perfect storm of selling.” The effects have been dramatic and painful. Nearly 2.1 trillion dollars of capital have vanished as the market has shed nearly 15% of its value in the last month.* There are a lot of words that could describe the stock market right now, and “perfect” is probably not the first choice for many investors.

Motion Sickness

Sadly, this market volatility is nothing new, but it has gotten to the point that market observers need to take Dramamine before the bell rings. While some asset classes will suffer through volatility to get great returns, the stock market can make no such claims. The Dow Jones is trading at the same levels it did in 1999. NASDAQ is doing no better and is at nearly 50% off all time highs that were reached 11 years ago. Looking at these numbers, the Wall Street mantra that the U.S. stock market is the best vehicle for equity growth fails under any level of scrutiny.

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