First, a story torn from the history books:
“In 1593 tulips were brought from Turkey and introduced to the Dutch. The novelty of the new flower made it widely sought after and therefore fairly pricey. After a time, the tulips contracted a non-fatal virus known as mosaic, which didn’t kill the tulip population but altered them causing “flames” of color to appear upon the petals. The color patterns came in a wide variety, increasing the rarity of an already unique flower. Thus, tulips, which were already selling at a premium, began to rise in price according to how their virus alterations were valued, or desired. Everyone began to deal in bulbs, essentially speculating on the tulip market, which was believed to have no limits.” See Investopedia
Are seeing a bubble forming in the multifamily market? Are apartments prices behaving like tulip bubble? My assertion is we are not likely to see a bubble in the multifamily market in 2014.
Read more...3 Questions to Determine If We Are In a Multifamily Bubble via biggerpockets.com