Is the multi-family sector becoming overbuilt?

Multi-family construction activity has bounced back strongly since the crash. But the pipeline of multi-family homes under construction does not look particularly large relative to the stock of properties. Moreover, rental vacancy rates are below normal levels and if anything point to a further acceleration in rental value growth. The upshot is that, outside a small number of metros, concerns that the multi-family sector is becoming overbuilt are misplaced.