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Apartment Market Hot Streak Continues

(This information was produced and shared by NMHC.) For the sixth quarter in a row, the apartment industry improved across all indexes in the National Multi Housing Council’s (NMHC) Quarterly Survey of Apartment Market Conditions. The survey’s indexes measuring Market Tightness (76), Sales Volume (54), Equity Financing (58) and Debt Financing (77) all measured at 50 or higher, indicating growth from the previous quarter. “The apartment sector’s strength continues unabated,” said NMHC Chief Economist Mark Obrinsky. “Even as new construction ramps up, higher demand for apartment residences still outstrips new supply with no letup in sight. Despite the need for new apartments, acquisition and construction finance remains constrained in all but the best properties in the top markets.” Key findings include: Financing is available, but only for top markets. Only 16 percent reported acquisition capital being available in all markets at all times. Even fewer (10 percent) stated that construction capital was available across markets. The majority reported that acquisition financing (65 percent) and construction financing (52 percent) was only available in top-tier markets. Majority report increased market tightness. The Market Tightness Index edged up to 76 from 74. For the first time in a year, more than half (55 percent) of respondents said that markets were tighter. By contrast, only 2 percent reported the markets as loosening and 43 percent reported no change over the past three months. The Sales Volume Index dipped slightly to 54 from 57. Nearly one quarter (24 percent) of respondents reported increased sales volume, compared......
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