News

…The high rate of residential foreclosures in the Inland Empire is one factor that makes apartment investment attractive in the region, according to managing director Edward Ratinoff. The region remains flooded with homes built prior to the 2007 credit freeze, in addition to thousands of homes that have entered the market through foreclosure.

Phoenix is not worried by the threat of so-called “shadow inventory,” or the high number of single-family homes for rent that could undermine the demand for apartments, however.

“Just because a house is for rent doesn’t meant that an apartment renter will immediately opt for a house instead of an apartment,” he says. “A family might want a house, but a single person might prefer an apartment,” he says. “Even if the rent is the same, a single person may not want all that responsibility for maintenance of a single family home,” he adds…