Jan 04, 2013
Healthier housing market will put pressure on multifamily buildings
04 Jan 2013
Posted by Andrew Kantor
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?
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.