Rentals Chip Away at Home-Builder Gains

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.”

via Rentals Chip Away at Home Builder Gains.