• Ian Ippolito

How Will All the Apartment Overbuilding End?

The similarities to the years leading up to the “Apartment Recession” of 1972 are eerie. If history repeats itself, the end won’t be pretty.

(Usual disclaimer: I'm just an investor expressing my personal opinion and not a financial advisor, attorney or accountant. Consult your own financial professionals before making any financial decisions. Code of Ethics: We do not accept any money from any sponsor or platform for anything, including postings, reviews, referring investors, affiliate leads or advertising. Nor do we negotiate special terms for ourselves in the club above what we negotiate for the benefit of members.).

Class-A loses its shine

For decades, real estate investors could rely on a simple rule of thumb. Class A apartments (the newest and most expensive with the highest rents) performed the best in good times and went down the least in bad. Next came Class B (older properties with moderate rents). And Class C (older properties in challenging neighborhoods with even lower rents) brought up the rear. So investo