When the single-family residential market boomed from the late 1990s through the mid-2000s, builders were so flush with cash they could afford to overpay for raw land, thus crowding out those who wanted to build multifamily rental housing.

The pace of rental housing construction quickly fell behind the 350,000 units needed to maintain balance in the market. Things got even worse during the Great Recession, when only between 100,000 and 170,000 new units were constructed annually.

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