Although it believes that home prices are still too high, Fitch Ratings analysts acknowledge the recovering housing market — and point out that it might not bode well for multifamily units. With investors snapping up single-family homes to rent out, mortgage rates low, and unemployment dropping, who wants to live in an apartment?

CoStar has the story:

Looking forward, Fitch said it expects decreasing rent affordability for apartments and the increasing relative/absolute attractiveness of home ownership will cause multifamily demand and operating fundamentals to more closely track economic growth.