[MissoulaGov] Moratoriums and Vacancy Rates

Paul Sopko psopko at highstream.net
Fri Jun 29 09:30:22 MDT 2007


<If banks put a lending moratorium on multi-family construction it would effectively illustrate a large excess of new rentals in <Missoula's market. And perhaps that was the persons intent when they made that comment to you. For the sake of this list-serve (which reaches a great deal of people and more daily) I'd hope we'd make sure we have facts before making comments that <drastically affect the way we all view Missoula's growing housing market. Only when we are well informed can we make thoughtful <decisions on the future growth of Missoula.

<Thanks,

<Jerry


My comments were based on a conversation I had with a commercial lender about 3-4 months ago. I don't think I was lied to. Banks are diverse with respect to their lending practices and those comments probably reflected the practice of a couple (not all) banks in the Missoula area. I felt this information was pertinent given that Mr. McGrath was claiming (without any credible numbers to back it up) that "housing numbers" showed a vacancy rate of 1%. Given your lenders estimates, I feel the this small debate is beneficial to the listserv since Jim didn't seem to have his facts straight before posting the 1% claim.

Thanks.

Paul Sopko
----- Original Message -----
From: Jerry Petasek
To: missoulagov at cmslists.com
Sent: Thursday, June 28, 2007 3:06 PM
Subject: [MissoulaGov] Moratoriums and Vacancy Rates


Paul Sopko wrote:


"BTW, I heard a couple of months ago that local banks had put a moratorium on loans for construction of multi-unit apartment complexes because the vacancy rate for these units had become uncomfortably high. "


In regards to this comment I contacted two local commercial lenders that I work with and they commented:

"Don't think that is accurate. Pretty normal vacancy rates from what I hear- running around 4-6%. Obviously with school out it could be higher right now but if there is a moratorium out there it is news to me."

"Sure news to me. You see some signs up for vacant units, But I think that's typical at this time of year. Haven't heard of abnormally high vacancy."

If banks put a lending moratorium on multi-family construction it would effectively illustrate a large excess of new rentals in Missoula's market. And perhaps that was the persons intent when they made that comment to you. For the sake of this list-serve (which reaches a great deal of people and more daily) I'd hope we'd make sure we have facts before making comments that drastically affect the way we all view Missoula's growing housing market. Only when we are well informed can we make thoughtful decisions on the future growth of Missoula.

Thanks,

Jerry

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