Article: Economists: apartment demand, cap rates on the rise.(INDUSTRY INSIDER)

Demand for apartment residences is rising as mortgage foreclosures and residential-market delinquency rates continue their upswing, according to Reis Chief Economist Sam Chandan and Senior Economist Victor Calanog during a Sept. 6 conference call.

For the sixth consecutive quarter, declining residential investment has been a significant drag on growth, shaving 60 basis points from the aggregated results in Q2 2007. Economics generally agree that the risk of recession has increased markedly in recent weeks.

Supply issues have been weighing heavily on the housing market, with residential investments falling since Q1 2006. However, the inventory of houses and condominiums ...

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