The apartment market continues to struggle, but shows early signs of possibly stabilizing, according to the National Multi Housing Council’s latest Quarterly Survey of Apartment Market Conditions.
- The Market Tightness Index rose from 16 to 20. This was the eighth straight quarter in which the index has been below 50, but it also the third straight quarter in which the index measure has been rising, as greater shares of respondents are reporting that vacancies are unchanged from the previous quarter rather than even looser.
- The Sales Volume Index rose again from 30 to 44, the highest level in 14 quarters. Twelve percent of respondents said sales volume was higher—the highest share reporting that in two years. It is possible that some buyers and sellers are beginning to test the waters in this depressed transaction environment. Still this was the 15th consecutive quarter the index has been under 50 (an indication of declining sales).
- The Equity Financing Index increased from 29 to 39. Most (68 percent) thought equity financing conditions were unchanged, the highest such response in seven quarters. This was the ninth consecutive quarter with an index reading below 50.
- The Debt Financing Index declined slightly from 41 to 39, with 31 percent of respondents indicating that debt financing conditions had worsened. This was the ninth straight quarter with an index reading under 50.