original article published in Midwest Real Estate News on October 26, 2010 by Dan Rafter
Bruce Gerhart, Senior Vice President and Midwest Regional Director based out of the Cleveland office of commercial mortgage banking firm Love Funding, says that the multi-family industry has remained strong due to its cautious nature. Gerhart states, "Within the Midwest, there has been very little building over the past eight, nine or 10 years when it comes to multi-family. Multi-family really has been underserved with you compare it with single-family housing in the Midwest. This under-building has helped to keep multi-family steady even as the economy goes through its difficulties."
He goes on to say that due to the economic slump more people are looking to rent as opposed to owning a home, and therefore there is a higher need for multi-family buildings. He also states that the multi-family industry took a hit early on, but has been able to take advantage of the tough economic situation. When these multi-family units took a hit early on, landlords struggled to keep their building fully occupied, and thus, rents went down. Today, rents are stable and in some cases, they are even going up.
To Read more of Gerhart's thoughts, CLICK HERE.
What are your thoughts? Is the Multi-family industry really as solid as we think?
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