"What is happening is healthy because we need the supply desperately, but it's just a natural part of the capitalist marketplace that people crowd in to satisfy a need and at some point that need is met," Humphries said, noting that those who have outstanding plans to produce more multifamily after the need is met may find themselves with extra product on their hands.
Humphries said the ability to gauge when the need will be met several years out is the trickiest part, but one that investors face constantly when choosing to invest in projects that won't turn around for years.
Tom Bozzuto, chairman and CEO of multifamily developer The Bozzuto Group, said, "...we all think we're smart by getting into the market early, but what we don't realize is that there are 10 other smart guys out there."
Saying this also works to slow down some of the competition. There appears to be quite a way to go before the numbers overshoot demand. Will one be able to stay in though without over-leveraging — sticking one's neck out to far only to have it chopped off if a boom becomes a bust?