For those who are living in a Fairfield Residential apartment, do not panic over the bankruptcy. It will change nothing for you going forward. Keep paying your rent and proceeding as if nothing is different.

Fairfield Residential LLC declared bankruptcy yesterday as they have been severely hurt during the real estate slump. The company has 64,000 apartments, including their student housing and condos, that have been having problems with occupancy.

The other factor leading to the bankruptcy is that Fairfield was active in buying and selling real estate assets. Not a great business to be in these days.  

What is interesting is that with all the foreclosures occurring, apartment companies are still hurting. That tells me that those that have lost their homes are not going to rental properties but instead moving in with family. It will be interesting to see when that dynamic changes and where the people move to.

Fairfield Chief Executive Christopher Hashoika said demand for the company’s properties remained strong but “the unprecedented collapse of the U.S. real-estate market and capital markets has made it difficult, if not impossible, for Fairfield to continue without restructuring its financial obligations.”

Fairfield’s bankruptcy comes amid sharp increases in vacancies in the rental market, as rising unemployment reduces demand. In addition, the wave of foreclosures across the U.S. has glutted the market as many single-family homes are converted to rentals. via the WSJ

Related posts:

1. Capmark, Formerly GMAC Commercial, Files For Bankruptcy
2. Sheldon Good Files For Chapter 11 Bankruptcy
3. US Rental Vacancy Rate Highest in 23 Years
4. Mortgages May Be Safe From Bankruptcy Judges
5. The Peter Cooper – Stuyvesant Town Blunder Soon To Be A Bankruptcy?