LOS ANGELES-Cap rates for multifamily assets keep getting lower, and the push to purchase these properties in prime cities is increasing. A Jones Lang LaSalle/RealShare Apartments Outlook 2012 Survey at the recent Apartments 2011 conference found that the demand for multifamily is increasing. Click here for a recap of the entire event.

“We’re seeing a focus on coastal, gateway cities like Seattle, Portland, San Francisco and Washington, DC.—cities that have a strong focus on technology, biotech, life sciences and government as that’s where the job growth is right now,” said Seth Heikkila, vice president, Jones Lang LaSalle. “But to move out that risk continuum, investors are requiring higher cap rates.”

Cap rates right now in top markets are around 4%. Most people surveyed (34%) think that the market is a bit over exuberant. At the same time, though, 22% claim we have't hit a bubble.