Apartment Landlords Have a $2 Trillion Debt Problem That Is Only Getting Worse

Property investors borrowed record sums at historically low rates. As the bill comes due and interest rates rise, ‘the chickens are coming home to roost.’

I see another "too big to fail" bailout in our near future.

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Crazywaterspring · 61-69, M

My REITs are doing fine.

swirlie · 31-35, F

@Crazywaterspring
You're being paid with borrowed money, that's the point.

AthrillatheHunt · 56-60, M

Blackstone is worth upwards of 1/3 a trillion. They’ll be fine. So will their investors.

Carla · 61-69, F

If they borrowed with low rates, aren't those rates fixed through the loans maturity? Or did they borrow on a fixed time limit, with a balloon, forcing them into higher rates on new loans?
Surely, with rents so high, they shouldn't need bailouts. Or is the market so saturated with high rent units that it is flooded?
In my area, that is not the case...

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Northwest · M

@AthrillatheHunt

aren’t govt owned

Point is that they are not government funded.

AthrillatheHunt · 56-60, M

@Northwest that’s what people said about the banks in 2007 lol

Northwest · M

@AthrillatheHunt

that’s what people said about the banks in 2007 lol

I still don't know how this is related to whether these are private funds or public funds. They are not public funds.

SunshineGirl · 41-45, F

People need to get used to interest rates at around 5%. That is the historical norm. The anomaly is the super low rates of the 2010s. They won't be returning any time soon.

AthrillatheHunt · 56-60, M

@SunshineGirl I’d give a range of like 4-8%

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