Issue 1 (2009)
Most rental housing in America is found in small multifamily buildings and this sector provides most of the options for low- and moderate-income (LMI) renters. With a growing wave of investors buying distressed properties in LMI neighborhoods, there are concerns about the ability of investors to properly maintain their investments. The author explores the small multifamily sector and suggests ways that policymakers can move beyond code enforcement and provide a combination of carrots and sticks to incentivize and increase the presence of “good actors."
The Myth of the Irresponsible Investor: Analysis of Southern New England’s Small Multifamily Properties
Comparing the borrowing trends of owner-occupants versus investors in small multifamily properties reveals that investors may not engage in as much risky behavior as public sentiment leads one to expect. The authors investigate data from Southern New England and debunk several myths about the “irresponsible investor.”