The Washington Post had a great article today about how construction for rental apartments is growing steadily: http://www.washingtonpost.com/business/economy/apartment-building-permits-a-gauge-of-future-construction-rose-to-highest-level-in-3-years/2011/11/17/gIQAKVCGUN_story.html?hpid=z3
Evidently, over the past year building permits to build rental apartments are up 63%.
What does this mean? Developers are recognizing what a strong rental market there is. They are also taking advantage of low borrowing costs.
This just reaffirms what we have been saying that there is still value out there in owning rental properties. Eventually the scale will tip and there will be too many rental properties, which will bring down rents. Until then, we'll be sharing the best way to take advantage of this market inefficiency.
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