While single-family housing starts remain down, rental demand is driving new multifamily construction. But how long the demand will last is uncertain — an uneasy consideration for investors whose current investments may take years to hit the market.
"People who are thinking about renting are going to think about buying again, so the increase in demand for rental housing will start to plateau and supply will still be high," said Stan Humphries, chief economist at Zillow ($39.37 0.261%), who said he thinks the demand for multifamily housing will be met within "the next couple of years."
At the National Association of Real Estate Editors conference in Denver last month, Humphries said the multifamily sector would "be the next bubble." But, he doesn't want you to associate that word with the "Armageddon this country just endured."
Read more...Multifamily housing bubble may be in the future | HousingWire