Carson Block, a well-known short seller, has expressed concerns about the future of apartment complexes in the Sun Belt region. He predicts that they will become a significant issue in the commercial real estate sector.

Block has pointed out that many apartment properties were trading at negative capitalization rates even before the pandemic. Capitalization rates, also known as cap rates, are an important metric in real estate that indicates the relationship between a property's net operating income and its market value. These trends suggest a potential crisis in the apartment market, which should be closely monitored by investors and industry stakeholders.