According to Multihousing News, recent data shows that capitalization rates are about where they were in 2003.(All right, students, what are "cap rates"? Answer: the annual "net operating income" of a property divided by its market value, expressed in a percentage.)
http://www.multihousingnews.com/market-data/california-market-report-may-2014-additional-california-markets/1004100418.html
However, interest rates are much better: according to Freddie Mac, interest rates in 2003 were about six percent, and in 2014 they're in the low fours.
http://www.freddiemac.com/pmms/pmms30.htm
So why aren't investors snapping up apartment complexes, driving up the prices?
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