A global recession will affect every locality. The “credit crunch” that started in July was just a reversion to normal lending standards. When banks don’t want to lend, it is worse.
Typical recessions do the following:
For our tenants/applicant pool:
They lose their jobs
They move back in w/ parents, or join up and share rent
Vacancies increase as demand decreases
College attendence increases
Evictions & skips
They tend not to buy their first homes, remaining as renters
For our clients:
Rents decline/vacancies increase
Vendor rates are relatively soft, as their other work dries up
They lose their jobs
If they are personally affected, they want to sell their non-cash-
flow properties, or allow foreclosure
Your 2 cents?
