WASHINGTON — Expansion in apartment markets has moderated after a seven-quarter run, according to the National Multi Housing Council’s (NMHC) January Quarterly Survey of Apartment Market Conditions.
For the first time since 2010, two of the four indexes – Market Tightness (45) and Sales Volume (49) – dipped below the break-even level of 50, though just barely. The Equity Financing (56) and Debt Financing (57) indexes show continued improvement for the 8th consecutive quarter.
“The pace of improvement in the apartment industry is moderating, but the expansion remains solid,” says Mark Obrinsky, NMHC’s vice president for research and chief economist. “Lease-up demand is seasonally weak in January, which would fully explain the small drop in the Market Tightness Index. Beyond that, markets were quite tight three months ago, and remain tight today.
“New construction has picked up considerably since its 2009 low, but is still playing catch-up with the increase in demand for apartment residences.”
Full survey data are available here.