Addressing the regulations, but not the financing, means this scarcity doesn't change. Dodd Frank made speculative financing so difficult, that the industry ei

Addressing the regulations, but not the financing, means this scarcity doesn't change. Dodd Frank made speculative financing so difficult, that the industry either scaled up, as was mentioned in the article, to make it worth the trouble of pacifying HUD, or scaled down and run a business that essentially relies on clients to finance the projects. Most builders (and others in the industry) were forced to scale down. These were the builders that might have considered 4-plex or other small multifamily projects, but they've essentially been barred from the market.