Apartment Owners Apprehensive About Fed's REO-to-Rental Program - Distressed Assets via Multifamily Executive Magazine

As the federal REO-to-rental program begins its pilot phase, multifamily owners are anxious to see how it might affect their business.

The shadow market has always been an elusive X-factor in the apartment world. It’s a notoriously difficult part of the rental market to quantify. But now that the shadow market has its own government stimulus program—and with about 250,000 for-sale homes languishing on the agencies’ books—apartment owners are growing a little apprehensive.

Many of the program’s details remain to be seen, but the impact on national vacancy rates is expected to be minimal. Still, real estate is a local business. And in the hardest-hit markets still suffering from a glut of distressed for-sale housing, the program will certainly be a competitive factor for the multifamily industry.

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