NMHC Survey shows a softening in the apartment markets

According to a news release, a survey by the National Multi Housing Council (NMHC) based in Washington, D.C. showed that apartment market conditions are weakening in the month of January, especially when compared with the conditions from the month of October through to December. Even though the equity financing index managed to make it up to the break even mark of 50 from 39, other indexes, namely the sales volume index and the market tightness index stayed below this mark with scores of 41 and 41, declining from earlier scores of 46 and 46, respectively. The debt financing index remained at a score of 42. This has been attributed to a climb in the rates of interest which has resulted in a slow but consistent decline in terms of debt financing, as well as the overall sales volumes.

According to the Chief Economist and Senior Vice President for Research for the National Multi Housing Council, Mark Obrinsky, this change is not as significant and can be described as seasonal at best. This means that even though the current market conditions seem loose, the overall levels are still rather tight. With new supply expected to match the kind of demand being generated, the overall demand is expected to increase strongly over the course of the coming decade, with the only condition being the stability and progress of the overall economy.