| The quality of new loans on U.S. apartment buildings dropped in the second quarter, putting multifamily properties at greater risk of price declines should rent growth stall, according to a study by Chandan Economics.
The ratio of rental income to loan balances on high-rise apartments fell to 8.7 percent from 9.7 percent a year earlier, Chandan Economics said. So-called debt yield for securitized loans on all types of commercial properties, including apartments, rarely fell to less than 12 percent during the four decades through early 2006, before plunging as the market peaked, according to Toronto-based debt-rating company DBRS..............................................Full Article: Source |