Real estate investor Tawan Davis’ firm sees an opportunity for working families in Philadelphia’s distressed housing stock. In case you haven’t noticed, rental housing has become the place where the action is in the residential real estate industry today.
Several factors have contributed to this shift: Mortgage lending standards remain tighter than they were before the housing bubble burst, meaning fewer would-be buyers qualify. Millennials especially graduate college with huge millstones around their necks in the form of student loan debt that makes taking on a mortgage impractical at best. And Baby Boomers moving back to the city often prefer living arrangements where someone else does the maintenance.
The end result of this harmonic convergence? Everybody wants to build rental apartments now — even the big home builders like Toll Brothers.
But there’s still a problem: Everybody’s building those apartments for the folks with money. That means a glut of pricey apartments and a bunch of younger families and working folk still in search of a place to live.