Multi-family: "...demand remains strong and absorption in check."
Developers are rushing to increase supply of multi-family apartments, as there are now more. This even as single-family rentals continue to gain market share. Continued uncertainty in the housing market, tighter mortgage underwriting and weaker consumer wealth has pushed ever more Americans to rent; the foreclosure crisis forced others.
The boom in multi-family is already raising red flags.
"We are incrementally more cautious on the multi-family sub-sector, as we see a rising supply environment in 2014," note analysts at Cantor Fitzgerald. "Although at this point, data indicate demand remains strong and absorption in check."