Apartment owners keep just 11 cents of every rent dollar after costs.
That margin is getting squeezed as operating expenses rise nearly twice as fast as revenue.
Collecting the rent is getting harder too, with one in five working-age renters struggling to pay in full in 2025.
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Rising bills and missed payments are leaving owners with less cash to cover their debt.
For buyers, that means checking how much rent survives the bills before deciding what to pay.
Here’s what’s eating into owners’ returns and what to check before calling a property a bargain:
📊 CMBS Special Servicing Hits 13-Year High
🏠 Home Sellers Outnumber Buyers by 63%
💸 Costs Eat 89% of Every Rent Dollar
🖥️ Risks Mount in Wall Street’s Data Center Bet
🏚️ Lenders Accuse Apartment Empire of Rent Theft
🔑 Rents Fall, Yet More Renters Fall Behind
Video of the Week: Real Estate Agents Are Quitting EVERYWHERE — Here’s Why
Chart of the Week: 1 in 3 Apartment Loans Faces Refinancing Shortfall
Podcast of the Week: 45% of Sellers Offer Concessions
CMBS Special Servicing Reaches Highest Level Since 2013
The rate rose to 11.49% in September, with $2.65 billion across 42 loans entering special servicing. Office accounted for 57% of new transfers, while retail, lodging and multifamily rates also climbed.
Home Sellers Outnumber Buyers by 63%
The seller-buyer gap reached its widest level in records dating to 2013, with 41 of the 50 largest metros classified as buyer’s markets. Miami, Nashville and Houston led the imbalance, giving qualified buyers more room to negotiate.
Apartment Costs Consume 89% of Every Rent Dollar
Mortgage payments, operating costs, taxes, payroll and reserves leave owners with 11 cents per rent dollar, making expense assumptions critical when assessing rental returns.
Risks Build Around Wall Street’s Data Center Pitch
Investment firms are expanding access to data centers through public and private vehicles, but power constraints, permitting delays and refinancing risks complicate the opportunity.
Lenders Allege Rent Theft and Fake Insurance at Apartment Empire
Nord Group’s 11-property portfolio, financed with nearly $400 million in debt, is unraveling amid allegations of diverted rents, false insurance records and deteriorating buildings.
Falling Rents Fail to Ease Payment Trouble
One in five working-age renters struggled to pay rent in full in 2025, up from 16.5% in 2024, with middle-income renters showing the sharpest deterioration.
Video of the week