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NMHC Apartment Market Survey Shows Declining Conditions
Apartment market conditions declined in the National Multifamily Housing Council’s (NMHC’s) most recent Quarterly Survey of Apartment Market Conditions, released Tuesday. All four indices – Market Tightness (40), Sales Volume (41), Equity Financing (48) and Debt Financing (32) – came in below the breakeven level of 50, signaling less favorable conditions this quarter.
“Census data show that more apartments were delivered in 2024 than in any other year since 1974,” said NMHC’s economist and senior director of research, Chris Bruen. “This surge in new supply continues to put downward pressure on rent growth and occupancy, especially in sunbelt markets.”
He continued, “Federal Reserve officials, meanwhile, signaled in December that they are expecting short-term interest rates to remain higher for longer in their effort to combat inflation, now projecting a median of just two rate cuts in 2025. The 10-Year Treasury yield, as a result, rose 58 basis points between October and January, leading to a higher cost of both debt and equity capital in the apartment market and lower deal flow.”
- ◦Sale/Acquisition
- ◦Financing
