May 2003 Table of Contents

Housing Our Workforce

The gap between wages and rents continues to broaden and deepen. In 2002, there wasn't one jurisdiction in the United States where a minimum wage job provided enough income for a household to afford the fair market rate for a two-bedroom home. Read more

Managed Care Managed Care

With a cup of Starbucks coffee in one hand and his BlackBerry cell phone in the other, Paul Klaassen settles into a chair to enjoy a much-needed moment of peace. After taking a swig of his coffee and stealing a quick glance at his phone, the founder, chairman, and CEO of Sunrise Senior Living begins to tell the story of how he and his wife, Terry, sold their townhouse and used the money to start Sunrise Assisted Living – a business that now numbers close to 350 properties worldwide. Read more

2003 Multifamily 50 - Part 2

In 2002, three forces – a national recession, low interest rates for first-time home buyers, and an oversupply of new apartments–came together and created a "perfect storm" that crashed into the multifamily market, negatively impacting operating performance by putting upward pressure on the national vacancy rate. To stem the tide of declining demand, owners re-priced their rental rates through increased concessions and outright rental rate decreases, helping to stabilize the vacancy rate. The decrease demand for apartments is a root cause of the decline in operating fundamentals for the multifamily industry. Read more

2003 Multifamily 50 - Part I

While the multifamily market currently shows signs reminiscent of the devastating late 1980s, it looks like the industry is on track to a strong fourth quarter in 2003 and should remain steady for the foreseeable future. Although several areas have seen some of the short-term negative indicators that defined the late 1980s – an increase in vacancies, a rise in concessions, as well as stagnant rents – many states, including California, Texas, and New York, still have a major shortage of units and new development will continue. Read more

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