A recent article from Affordable Housing Finance showed that property management companies who operate affordable housing developments may be affected by significant market changes.
Many consumers are spending significant amounts of their monthly salary on rental payments, while many commercial property managers who own properties have experienced difficulty keeping maintenance at high levels, the news source noted. This has forced some to sell properties to other investors, who are marketing these to those who can afford higher rents. These new owners can opt out of their contracts and remarket the properties after only a few years.
"Preservation is absolutely critical," said Richard Burns, CEO of The NHP Foundation, according to the news source. "There is a serious shortage of affordable housing in the country today."
Furthermore, many more young people have been interested in renting, as they have preferred this method over buying, the news source added. Vacancy issues have been compounded by those who are dealing with a foreclosure on their record and have no choice but to rent a property, as their credit is not high enough to purchase another home.