The economy cratered—to use a term in popular parlance at that time—in September 2008, with the collapse of too-big-to-fail Lehman Brothers. While the measures undertaken by the federal government and the Federal Reserve averted complete financial meltdown—it never reached the point where we had to transport the necessary dollars to buy a loaf of bread in a wheelbarrow, as happened in Italy a few decades ago—the last few years have been a litany of ominous economic indicators.
Unemployment: in the double digits. Consumer confidence: an oxymoron. The Dow: mostly down. Property values: a fraction of what they were a few years ago. Foreclosures: way up. About the only positive are the interest rates, which hover near all-time lows. Mix in the mounting deficit, the Moody’s downgrade of U.S. T-bills in mid-2011, and a growing populist uprising centered around income inequality, and it’s not a boon time for much of anything to do with real estate in Chicago—or much of anywhere else.
Economists and real estate brokers alike seem convinced that 2012 will break no differently than 2011. When the good times return, they will do so slowly. How does the bleak economic outlook affect the property management industry, in the Chicagoland area and across the U.S.? Let’s take a look at the situation in various markets across the country.
Slow & Not So Steady
Like the rest of the economy, the property management industry remains sluggish.
“Our industry is not growing,” says Tara Miller, sales and marketing manager with First Choice Property Management, which is based in Florida. “The economy took a nosedive. New buildings stopped being built. We don’t have new communities to target. There are 500 communities in Palm Beach County, and 200 management companies vying for the same communities. It doesn’t mean we’re not taking on new clients, just not as many as I’d like.”