Bud Perrone News Today : Breaking News, Live Updates & Top Stories | Vimarsana

Higher interest rates and surging expenses are erasing US apartment investors’ profits, even though rents are climbing.

From Bloomberg: U.S. apartment landlords who benefited from rapid rent growth during the pandemic are suddenly in the red. Higher interest rates and surging expenses are erasing their profits, even as rents are still climbing in many places.

US banks’ unwillingness to lend and building owners’ desperation for credit have created a standoff. Some landlords threaten to default, betting banks and investors stand to lose more in a foreclosure.

Office districts in nearly every U.S. city have been under great stress since the pandemic emptied workplaces and made working from home common.

The health of banks and cities and the nation’s economy could hinge on high-stakes negotiations over commercial real estate loans.