Investors are seeking higher yielding investments, looking far beyond conventional, class-A apartment properties in prime markets. A growing number are bidding for government subsidized affordable housing properties.
“We’ve seen this cycle before. Conventional real estate investors come and play in our sandbox,” says R. Lee Harris, president and CEO of Cohen-Esrey Real Estate Services, a leading owner, manager and developer of affordable housing. “This is not a business you learn overnight.”
Harris and others shared their insights at AHF Live: The 2013 Affordable Housing Developers Summit, held in Chicago, Nov. 20-22. Affordable housing has become a relatively stable, strong business over the years, but poses challenges to speculators who aim to quickly raise the rents at affordable housing properties, according to housing advocates.
Read more...Speculators Eye Affordable Housing