CHICAGO, IL - Across the country, foreclosure filings hit one out of every 1,155 housing units in November 2013 as cited by RealtyTrac, a firm that tracks foreclosures. According to Steve Joung, President of Pangea Properties, a private Real Estate Investment Trust (REIT), the housing market will continue to struggle in 2014 and will shift many would-be home buyers into renters, especially in the hardest hit markets.
“When there are a large number of foreclosures, typically there is a shift towards renting versus buying,” says Joung. “Since the housing market crash, the increase of renters has been an ongoing trend.”
Joung points out that in states with high foreclosure rates such as Illinois and Maryland, renters have become the majority. “Potential buyers are willing to sacrifice the traditional housing investment for lack of liability,” says Joung. “However it has become increasingly competitive to retain renters. You’ll find that’s when maintaining affordable rates and including sought-after amenities really gives us an edge when it comes to long term retention.”
ABOUT PANGEA PROPERTIES: Pangea Properties is a private real estate investment trust (REIT) targeting the distressed residential multi-family real estate market. Pangea was founded in 2008 by Al Goldstein and Steve Joung with one mission: to bring service, value and care to its residents. The entrepreneurs saw an opportunity in the Chicago market to create a real estate firm that serves as both the property owner and the building manager, utilizing a call center to support the high bar for service and scalability. Today, Pangea has over $250 million into 8,000+ apartment units throughout Chicago, Indianapolis and Baltimore, with the goal of continuing to expand within current markets as well as into new markets. Pangea has been highlighted by several media outlets including WGN TV, Chicago Magazine and the Baltimore Business Journal, among others. Pangea’s founder Al Goldstein has been named one of Crain’s 2013 40 under 40 and is a recipient of the Ernst & Young Midwest Entrepreneur of the Year. For more information, visit Pangea online at www.pangeare.com, www.Facebook.com/PangeaRE, www.linkedin.com/company/pangea-properties or on Twitter @PangeaRE.