As the economy weakens, more people who would have qualified for home loans a few years ago no longer do. And scores of homeowners losing their homes in foreclosure are turning to apartments. Others who could qualify for a mortgage are opting for luxury apartments instead, seeking to wait out the housing bust. The mixture is starting to heat up the Tampa Bay area’s apartment market, which has struggled to fill thousands of units the past couple of years as renters rushed to buy homes.
…
“It used to be that people rented by choice,” Don Phillips said. “For many people, they now are renters by necessity.”
…
Tight credit, foreclosures and conversions are helping fuel apartment demand. But so is luxury rental living. Some developers see potential in luxury apartments, as some people who could afford to buy homes choose the lifestyle of apartments.
…
The housing downturn is good for apartment builders, even luxury ones, DellaZanna said, because more people are deciding not to buy. The Hanover company chose the Tampa location, she said, because it thought workers in Tampa may want short-term luxury housing.
Source: Tampa Tribune
