Appel noted that interest rates have been “the lifeline to our recovery,” adding that, with economic growth uncertain over the next two to four years, "If you can use leverage responsibly and generate cash-on-cash returns, you can bet less on growth.”

Hart said that value-add plays are coming back, but he added, "We need to get people working to justify the higher rents.” According to Appel, now is the best time in the past 15 years or so to be a value-add investor. “You have demand for units picking up. Now is the time you can start investing in these properties and getting a real return on your assets.”

Alan George, chief investment officer of Equity Residential, cited the wave of debt maturities coming up over the next five years, saying that Equity stands ready to take advantage of opportunities when they arise but is skeptical of a land rush. “We certainly hope there will be some opportunity, and had hoped there would be more this year than there have been,” he said.

During a breakout panel titled: “Distress: Turning Misfortune to Fortune,” receiver Taylor Grant, founding principal of Real Estate Receiverships, told the 1,400 conference-goers that a looming problem is whether the flight of capital to the multifamily sector has already overheated the market. “Current cap rates of 4% to 5% readily indicate the intense interest in the multifamily category," Grant said. However, he added, some of the actors in the multifamily industry today—particularly those involved in the purchase of existing distressed properties—are unfamiliar with risks, such as deferred capital maintenance and lurking legal issues.

Another factor that will affect the multifamily sector is the emerging shadow market, noted Grant, a former developer. “In the current economic scenario, Grant explained, “no one knows how deep the multifamily market really is.”

Many investors, and even Fannie Mae and FHA, Grant explained, are exploring the possibility of renting unoccupied, foreclosed homes. “And just how many children of baby boomers are moving back with their parents due to the unemployment situation? ‘Who knows,’ ” he said.

Notwithstanding the shadow housing situation, Grant believes the multifamily market is going to thrive in the next decade due to a number of demographic and economic considerations. First, there is every reason to believe that the live/work segment will accelerate among the Generation X and Y cohorts, with singles teaming up to share expenses, he says. Moreover, last year, the Census Bureau reported that about 50 % of those who answered a national survey said they were running their businesses out of their home, he added. Secondly, he said, a survey conducted by the National Foundation for Credit Counseling has found that 42 % of those who once purchased a home don’t own one now and believe that they will never own one again.