Is There a Multifamily Bubble?

LOS ANGELES-Due to the boom in multifamily development and capital pouring into multifamily investments, some are concerned that a new multifamily bubble is forming, according to panel moderator Gary M. Tenzer, principal and managing director at George Smith Partners, during RealShare Apartments 2013 in Los Angeles. Other panelists, however, didn’t necessarily share his concerns.

“It depends on the region,” said Alexia Mizrahi, Loan Originator at Loan Oak Fund. “Densely populated markets have appropriate cap rates. There is not a bubble in coastal communities.” Demand in these more populated markets continues to be strong, she continues, and lenders are staying aggressive.