Lenders' Insatiable Appetite for Commercial Real Estate
As Home Buying Returns, Do Apartments Face a Bubble? | by Diana Olick | CNBC's Diana Olick explains that strong demand for apartments has coincided with limited development activity, allowing rents and occupancy rates to rise. "But with the single family housing market slowly beginning to show signs of life," she writes, "the concern among banks and investors is that all that supply will hit the market just as rental demand drops off." CNBC cites data from Chandan Economics showing a surge in apartment lending during the last year. "Multifamily loan origination volume increased to $82 billion in 2011, up from $50 billion in 2010, according to Chandan Economics. Understandably, some lenders and investors are starting to ask questions."
Read the full analysis at the CNBC website.