Fall 2009 issue of Horizons

TITLE

rates slowed significantly, with rental rates falling in approximately 68 percent of 79 major metropolitan areas within the United States in late 2008. The trend of deflated rental rates has carried to 2009. Challenged by occupancy levels and downward pressures on rental rates, the industry has seen operational advantages in cost-cutting measures and increasing resident satisfaction to maximize returns and cash flow. Also, with defaults and workout deals more prevalent, many apartment owners and managers have attempted to capitalize on these misfortunes as they seek opportunities to take on these depressed projects through receiverships. Without a doubt, current economic conditions have brought about challenging times for the multifamily housing industry. Yet, with the increase of legislation focused on industry concerns and the additional guidance provided as more states work through the challenges and uncertainties of TCAP and the exchange program, it is anticipated that the multifamily housing market will rebound favorably in the upcoming years.

AVERAGE MONTHLY RENT PER UNIT — MARKET RATE

900

Dollars

800

700

600

500

769

662

715

790 660 762

639

737

647

867

400

300

Inside St. Louis Metro Area

200

100

Outside St. Louis Metro Area

0

2008

2007

2006

2005

2004

AVERAGE MONTHLY RENT PER UNIT — GOVernmenT-ASSISTED

700

Dollars

600

500

638

584

572

544

476

400

300

Questions? Contact:

200

Bryan C. Keller, CPA Partner-in-Charge Real Estate Services Group 314.290.3341 bryan.keller@rubinbrown.com Maureen M. Pardo, CPA Manager Real Estate Services Group 314.290.3468 maureen.pardo@rubinbrown.com

100

Missouri

0

2008

2007

2006

2005

2004

55 u fall 2009 issue