[quote=spdrun]
Some may even go elsewhere for investments since the East Coast and parts of the South are in a similar pickle now as SD was two years ago. (And it’s a lot easier to get a decent cap rate on 1-3 families there than in SD.)[/quote]

Historically, most buyers of singe family homes have not been investors. Particularly in CA, investing in SFD for cash flow has generated a horrible return as compared to multi-unit housing. Single familys, even condos, are much more labor intensive than multi-units. Try being a landlord for 12 houses scattered across the county or even the country, compared to a 12 unit apt building. I’ve done both, and the SFD are just a pain in the ass in comparison. And they’ve almost never had anywhere near decent price/rent ratios. For some hard working buyers, that changed for awhile when rents rose a bit and prices collapsed. But those days are probably close to over. If there isn’t appreciation, there’s not going to be much reason for investors to be in the SFD market.