It's easy to see why multifamily construction is booming: vacancy rates are falling and rents are on the rise, making investments in rental property particularly attractive.
According to the Harvard Joint Center for Housing Studies' "The State of the Nation's Housing 2012" report, multifamily starts surged 54% from 2010 to 11. And in the first quarter of 2012, they were up 36.1%.
Despite the optimism, several risk factors are pointing to a potential multifamily housing bubble. Developers and their lenders should proceed with caution.
Why worry?
Read more...Multifamily Bubble on the Horizon? - Bank Think Article - American Banker
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