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
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That's been something that I've had such a hard time with understanding. With the foreclosures being so high for so long now, why wouldn't the rental market be flourishing?
But, we see landlords continuously dropping their rents so the idea or myth of sellers moving into their families extra bedroom or garage isn't so far fetched. Crazy times when the only viable option is your brother in-laws garage
Here in LV people are renting homes instead of apartments or condos.