An increase in new builds in the multifamily sector in recent months has raised some concerns that the market may face supply risk down the line; but CMBS industry analysts said it’s probably premature to suggest that the sector is headed towards a bubble.

While the multifamily sector is the only space to see a substantial rise in construction, the rate of new starts today are still well below the average levels of the past twenty years, according to Barclays Capital CMBS 2013 outlook report. “We expect increased demand from a slowly improving economy to easily make up for the rise in supply in the coming years,” said analysts in the report.

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