Rental apartments are the favorite sector for real estate investors, according to an annual survey conducted by the Urban Land Institute and PriceWaterhouseCoopers.
Researchers note that financing for apartments is readily available through Fannie Mae, Freddie Mac and the Federal Housing Administration. Moreover, demand is healthy as foreclosures force former homeowners to become renters and the generation known as the 'Echo-Boomers' are looking for rentals.
"This is making apartments the favorite of our survey respondents," said Jonathan Miller, the author of the ULI/PWC "Emerging Trends" report.
He noted that apartment vacancy rates are headed down well ahead of all other sectors, such as office and warehouse properties.
"In some markets, we going to see development next year in apartments," Miller said.
