Investors Assess Apartments After the Love Is Gone

A strong recovery in single-family homes may spell bad news for apartment companies that reaped big profits over the last few years by renting to displaced homeowners, Fitch Ratings says in a new report.

The ratings agency says that an improving housing market could weigh on rent growth for multifamily real-estate investment trusts. Fitch estimates that 80% of the growth in apartment demand between 2009 and 2011 was derived from declining homeownership.

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