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November 5, 2012
Apartment Market Expansion Continues as Growth Rate Moderates

WASHINGTON — Markets improve across all areas for seventh straight quarter, NMHC survey shows

WASHINGTON — Apartment markets improved across all areas for the seventh quarter in a row, but the pace of improvement moderated, according to the National Multi Housing Council’s (NMHC) Quarterly Survey of Apartment Market Conditions.

The survey’s indexes measuring Market Tightness (56), Sales Volume (51), Equity Financing (56) and Debt Financing (65) all measured at 50 or higher, indicating growth from the previous quarter.

“Even after nearly three years of recovery, apartment markets around the country remain strong as more report tightening conditions than not,” says NMHC Chief Economist Mark Obrinsky. “The dynamic that began in 2010 remains in place: the increase in prospective apartment residents continues to outpace the pickup in new apartments completed.”

While development activity has picked up considerably since the trough, finance for both acquisition and construction remains constrained and flows mainly to the best properties in top markets, Obrinsky adds.

Full survey data are available here.

August 9, 2012
Apartment Market Hot Streak Continues

WASHINGTON — Six straight quarters of multi housing growth reported

WASHINGTON — For the sixth quarter in a row, the apartment industry improved across all indexes in the National Multi Housing Council’s (NMHC) Quarterly Survey of Apartment Market Conditions. The survey’s indexes measuring Market Tightness (76), Sales Volume (54), Equity Financing (58) and Debt Financing (77) all measured at 50 or higher, indicating growth from the previous quarter.

“The apartment sector’s strength continues unabated,” says NMHC Chief Economist Mark Obrinsky. “Even as new construction ramps up, higher demand for apartment residences still outstrips new supply with no letup in sight. Despite the need for new apartments, acquisition and construction finance remains constrained in all but the best properties in the top markets.”

Key findings include:

  • Financing is available, but only for top markets. Only 16% reported acquisition capital being available in all markets at all times. Even fewer (10%) stated that construction capital was available across markets.
  • For the first time in a year, more than half (55%) of respondents said that markets were tighter. By contrast, only 2% reported the markets as loosening and 43% reported no change over the past three months.
  • Nearly one quarter (24%) of respondents reported increased sales volume, compared to 16% who indicated decreased volume and 55% who reported conditions as unchanged since the last quarter.
  • Equity financing marked 12 straight quarters of positive activity (Equity Financing Index at or above 50).
  • Debt financing was the highest it’s been in two years. Only 2% reported borrowing conditions as being worse from the previous quarter.
May 7, 2012
Market Conditions Improve For Apartment Industry

WASHINGTON — Findings reflect gradual recovery for multifamily apartment sector

WASHINGTON — Optimism continues for the apartment industry, according to the latest results of the National Multi Housing Council (NMHC) Quarterly Survey of Apartment Market Conditions. The findings reflect a gradual recovery for the multifamily sector that faced a 50-year low in apartment starts in 2009, which is good news for the coin laundry business.

The first-quarter survey’s four indexes measuring Market Tightness (74), Sales Volume (57), Equity Financing (62) and Debt Financing (65) remained above 50 for the eighth time in the past nine quarters. Any number above 50 indicates quarter-to-quarter growth.

“Market conditions improved across the board, even from the rather strong level of three months ago,” says NMHC Chief Economist Mark Obrinsky. “Demand for apartment residences—and apartment properties—continues to grow. We anticipate this increasing further in the coming years due in part to the large number of younger households moving into the housing market and a greater preference shown for renting.”

February 6, 2012
Apartment Industry Recovery Continues, Survey Results Show

WASHINGTON — Market conditions continue to improve for the multifamily housing industry across all areas, according to the latest National Multi Housing Council (NMHC) Quarterly Survey of Apartment Market Conditions.

For the seventh time in eight quarters, all four indexes reflecting Market Tightness, Sales Volume, Equity Financing and Debt Financing were at or above 50, indicating growth from the previous quarter. This is good news for the multihousing laundry business.

“In the face of an unprecedented virtual shutdown of development, the apartment market continues its strong recovery as developers play catch-up to the growing demand for rental housing,” says NMHC Chief Economist Mark Obrinsky. “Investors continue to view apartments as a preferred asset class in today’s environment, and long-term demographic changes favor rental housing.”

Even so, NMHC expects the pace of improvement in transaction activity to ease moving into 2012. The survey reflects nearly continuous recovery over the past two years.

Development activity continues to increase in most markets, with just over half of responding NMHC members (53%) reporting a substantial pickup in land acquisition, lining up financing, and getting building permits, though not much yet in the way of actual construction starts.

Full survey data are available here.