The upside of the downturn: although a recession or a period of subpar economic growth are never good news, the apartment industry is far better positioned to withstand such an occurrence in 2008 than it has been in the past.

Units, April, 2008 by Moody, Richard

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It is clear that the U.S. economy lost a considerable amount of momentum during Q4 2007, to the point that worries over a slower rate of growth have given way to fears that the economy is either already in or will fall into recession in 2008.

Should the U.S. economy manage to skirt a recession in 2008, it seems clear that growth will remain below trend for the next several quarters. Prospects of slow economic growth, if not outright recession, no doubt will cause concerns within the apartment industry, particularly among those who can recall how apartment fundamentals suffered during past economic downturns.

As it turns out, looking back is a useful exercise to engage in at the present time. The value of this exercise,...

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