WASHINGTON, DC – The apartment market’s rebound continues to gain momentum, according to NMHC’s latest Quarterly Survey of Apartment Market Conditions.
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Sales volume is up, debt and equity are more available and markets are tighter. Indexes for both sales volume and equity financing registered all-time highs. The biggest improvement came in debt financing, which jumped from 58 to 81.
“Apartment market conditions continue to improve across the spectrum,” said NMHC Chief Economist Mark Obrinsky. “Indeed, the average for all four NMHC indexes set a new record for the second quarter in a row.”
- The Debt Financing Index increased dramatically, from 58 to 81, meaning borrowing conditions have improved. A full 64 percent of respondents said conditions for multifamily borrowing were better this quarter than last. This is the second-highest debt financing figure in the history of the series. Only three percent reported worse conditions.
- The Market Tightness Index, which measures changes in occupancy rates and/or rents, rose from 81 to 83. Fully 69 percent of respondents said markets were tighter (meaning lower vacancies and/or higher rents). This was the sixth straight quarter in which this measure has risen, and is the highest figure since July 2006.
- The Sales Volume Index increased from 72 to a record-setting 78. Sixty-one percent of respondents indicated sales volume was higher. This was the second consecutive record level in this index, and an indication of widespread improvement.
- The Equity Financing Index increased again from a prior record 71 to a new
record 73, indicating that equity financing is more available. Nearly half—48 percent—indicated that equity financing was more available; another record. This is the seventh straight quarter of improvement for this index.