While many Americans may be tempted by low mortgage rates to enter the home buying market, there is still room to grow for the multifamily market, as there is still some fear about the health of the residential market.

"Uncertainty is keeping people from making home buying decisions," Brady Titcomb, research manager for Jones Lang LaSalle, told National Real Estate Investor.

Titcomb believes that the multifamily market could see improvements in 2013 due to the growing number of adults under the age of 35 and over 55. With 50 million generation Y adults currently in their prime renting years, landlords could see an increasing amount of rental applications in the next 12 months.

Additionally, Titcomb said that the memory of the housing crash could steer people toward renting, as they may still see buying a home as a financial risk.

Another factor that could drive more people to renting is the difficulty first-time home buyers have had entering the market. According to the Campbell/Inside Mortgage Finance HousingPulse Tracking Survey, the share of first-time buyers declined from 37.1 to 34.7 percent in October.