WASHINGTON — For the third quarter in a row, apartment markets expanded across all four areas in the National Multifamily Housing Council’s (NMHC) recent Quarterly Survey of Apartment Market Conditions. All four indexes remained above 50, indicating growth from the previous quarter, the NMHC reports.
The market tightness index fell from 68 to 52, with 52% of respondents reporting unchanged conditions from three months ago. Roughly a quarter believed that conditions were tighter, while 22% reported looser conditions.
The sales volume index rose to 58, with the majority of respondents (56%) saying that sales volumes were unchanged from three months earlier, according to the NMHC. More than a quarter of respondents noted higher sales (27%) than lower sales (11%).
The equity financing index fell four points to 54 from the previous quarter, with 54% of respondents continuing to report that the availability of equity financing is unchanged from three months ago. This is “the fifth consecutive survey where a majority of respondents report unchanged conditions,” says the NMHC. Roughly one-fifth of respondents say financing was more available than last quarter, while 11% say financing was less available.
The debt financing index rose from 68 to 71, with 45% of respondents reporting better conditions for debt financing, up from 37% in July. For 41% of respondents, conditions remain unchanged, while only 2% say conditions are worse.
Mark Obrinsky, NMHC’s senior vice president of research and chief economist, says apartment markets are “still firing on all cylinders.”
“Demand for apartment residences is still strong enough to offset the gradually rising level of new apartment deliveries,” says Obrinsky. “Even with occupancy rates at high levels, markets got just a bit tighter in the last three months.”
The survey also found a rise in demographics beyond the “core mid-to-late 20s set,” with 22% reporting an increase in the number of baby boomers among their residents; 21% indicating an increase in “forty-somethings” in their properties; and a smaller share of respondents reporting an increase among single parents (13%) and married couples with children (4%).
“Young people still make up a disproportionate share of apartment renters,” says Obrinsky. “But now we’re starting to see a growing segment of baby boomers attracted to apartment living.”
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