The Money Mustache Community
Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: andysandp on March 16, 2017, 03:31:16 PM
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Anyone own Real Estate during the 1990's crash? What was your Vacancy and Rents like?
My father owned a building in NH and he said he got crushed with a 50% vacancy rate in the early 90's.
During the 2008 Crash, his building wasn't affected too much.
I know every city and region was affected differently, so I'm curious to hear what other people's Rent were like during the crash of 1990's.
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I was going to college in San Diego during the dot com bust of the late 90's and early 2000's. My rent went up every year and never went down.
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It's going to be highly dependent on the area. For example, in Atlanta Metro in 2008, rents dipped up to 30% in some areas due to all the excess inventory drink homeowners renting out their personal residences.
I also had rentals in Maryland, where rents continued to climb.
So, the best answer is, it depends.
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area dependent to be sure. In 2008 crash, rents went up and finding good tenants was easier. 2005-2007 were harder years for us as landlords because they were writing huge home loans to anybody who could fog a mirror. Rents in my area are going way up and the demand is nuts.
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I actually looked up the data for historical vacancies at one point: https://forum.mrmoneymustache.com/index.php?action=dlattach;topic=66993.0;attach=33834;image
On edit: it's a bit hard to read, but the peak in vacancies at the right is 08/09. The 90's were pretty much flat, at least nation-wide. If you break it down by region, between the mid-80's and mid-90's, vacancies went up in the NE, down in the South and were flat in the West and Midwest.
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Between ~2000 and 2012, my rents were basically flat. Some fell.