Just saw this article on vacancies - wow. This will support the multi family marketplace for quite a long time. And, if the Fed raises more quickly, that will only exacerbate the problem by reducing construction lending and thereby decreasing supply coming online. Since rental rates are one of the biggest components of the CPI, it is actually counterproductive for the Fed to make money overly "expensive" by raising rates.
If the monthly rent check is already painful to write, brace yourself.
The Census Bureau's U.S. rental vacancy rate, which tracks the share of properties that are unoccupied, fell to 6.8 percent in the second quarter. That's the lowest level using comparable data since 1985.
The short supply of units means "rental inflation is not going away anytime soon," Neil Dutta, head of U.S. economics at Renaissance Macro Research LLC, wrote in a note to clients.
Already rents have climbed 3.5 percent in the 12 months through June, matching the biggest jump since 2008, Labor Department data show. That far outstrips the increase in consumer prices excluding food and fuel, which gained 1.8 percent in the same period.
Entire article here: http://www.bloomberg.com/news/articles/2015-07-28/your-rent-s-about-to-get-even-higher