Apartment Market Has Big Momentum

The National Multi Housing Council reported more good news for apartment landlords on Monday, since for the sixth quarter in a row, the apartment industry improved across all indexes in the NMHC’s Quarterly Survey of Apartment Market Conditions.

The industry, in short, is in clover, and even the prospect of new product development isn’t dampening its high spirits.

The survey’s 2Q indexes measuring Market Tightness came in at 76; Sales Volume was 54; Equity Financing tallied 58; and Debt Financing stood at 77. Since 50 or more means growth, all the indexes are growing. To use another, more mechanical analogy, all the apartment industry’s firing on all cylinders.

“The apartment sector’s strength continues unabated,” noted NMHC chief economist Mark Obrinsky in a press statement. “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.”

 

Source:  Multi-Housing News

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