Massive oversupply. Slumping demand. Surging “prices” no one can really afford anymore.
That’s what popped the housing bubble in the mid-2000s. Now, it’s happening again … only in RENTAL property rather than owned homes.
This Wall Street Journal story goes into more detail about the trend I flagged several months ago.
It notes that rental-rate growth is slowing sharply, particularly in urban areas. A key reason: Multifamily permitting and construction activity has been running at more than double the long-term average in cities around the country.
That is going to put even more pressure on apartment REITs, which are already starting to warn of lower-than-expected earnings.
