Apartments can weather the potential turmoil the housing market may face better than single family residences could.

There is a situation coming up that everyone in Real Estate should be aware of. The baby boomers, like me and my generation, own a lot of homes here and all over the country. We are reaching our 70s and 80s now and we are starting to pass away at an alarming rate. The generation after us did not have enough children to buy those homes. So, one of these days, and it will not be that far away, it will be sooner rather than later, there will be a lot of homes on the market, a great supply, without a corresponding number of buyers. Supply without demand leads to lower prices and a glut of homes and it will affect the whole economy. Builders will not have to build that many new homes because there will be more than enough homes to fill the need. We will not need building materials and jobs will be lost. The need for furniture will go down as will the number of cars on the road. So, you see that the whole economy will be affected by this situation.

I do not have an answer at the moment and I do not think that anyone has one. The best I can do at this moment is make my fellow Real Estate entrepreneurs aware of the situation. I do think that single family residences will be much more affected than apartment buildings. That is my educated guess and I am standing by it at the moment. Apartment building owners can adjust rents and withstand a rise in the vacancy factor where you cannot do that for single family dwellings.

I welcome your comments on this matter.