In the last quarter of 2008 Dallas-Fort Worth apartment occupancy fell by nearly 6,000 units. The shocking decline has analysts wondering, where did the renters go? Well, we know from the number of job losses, foreclosures and bankruptcies, these renters simply moved out. Many developers made the mistake of believing that the housing crisis would create more renters. Almost 4,200 new apartments were placed on the market in the last quarter of 2008 with approximately 21,000 additional rentals in development. But who is going to rent those apartments? Many of those who have faced foreclosure have moved out of their homes and into the homes or apartments of relatives and friends, not new apartments. With job losses mounting many renters are also doubling up as they stretch their unemployment checks and hope they find a new job.

Foreclosure is not creating the number of renters developers thought it would. By the time most homeowners go through the foreclosure process, they are out of money, out of time, have damaged credit and simply cannot afford to move into an apartment (alone). But there is a silver lining to this apartment vacancy cloud. If a homeowner is facing foreclosure or job loss they can take action ahead of time to move out and take advantage of the apartment vacancy rate while their credit is still good. A good bankruptcy attorney can give you advice on what step are best for your situation.

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