Housing “Recovery” Showing New Cracks, This One Will Expand!

Posted By on October 2, 2013

Wise Dog Sources:

“We know from experience that if Carlyle Group is a seller (of anything), then you’ll want to be a seller also.  Yes, they are that good.”   “They buy wholesale, and sell retail or above. There’s no meat left on the bone when they’re done!”

Via Bloomberg,

Carlyle Group LP, the private-equity firm with more than a third of its $2.3 billion U.S. real estate fund in apartments, is reducing holdings of multifamily housing as rent growth slows from a post-recession surge.

The company is considering apartment sales as rising construction reduces multifamily shortages and price gains for rental properties make them less attractive for private-equity firms that seek returns of 20 percent or more.

“Our capital was useful at the front edge of the recovery.” [in other words, we sparked the bubble and now we want out]

Apartment-rent growth is slowing as the U.S. homebuying market rebounds and a wave of multifamily building adds to supply. In the third quarter, tenants on average paid 3 percent more than a year earlier after landlord concessions, down from 3.9 percent annual growth in effective rents in 2012 

“This remains well below what one would usually expect given such a low national vacancy rate,” Ryan Severino, senior economist at Reis, said in the report. “This reflects continued modest employment and income growth.”

“Investors really want the new Class A properties so we’re selling into that demand,” Stuckey said.

“Our basic view is we’re in a low-growth environment,”

Wise Dog

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