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Market economics tells us that the building/property management industry should keep creating new apartments so long as their costs are 90% or less than the net rental income forecast over a 30 year horizon. Some firms will only build with a higher return in mind, others will probably make mistakes and get a lower return, but that 90% figure will be around the average.

From every indication, the industry is taking that bet big time right now.

by Will on Jan 19, 2012 2:51 pm • link • report

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