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NMHC: Debt Financing Outlook Improves as Other Sales Metrics Weaken

The outlook for multifamily debt financing has turned positive for the first time in more than two years, but otherwise apartment market conditions continued to weaken in the National Multifamily Housing Council’s (NMHC) Quarterly Survey of Apartment Market Conditions for January 2024. Although Debt Financing came in at 66, the Market Tightness (23), Sales Volume (34) and Equity Financing (44) indexes all came in below the breakeven level of 50.

“The 10-Year Treasury yield has dropped nearly a full percentage point since October, as core inflation continues to moderate and Fed officials signal likely rate cuts in 2024,” said Chris Bruen, NMHC’s senior director of research. “This has caused the availability of debt financing to increase for the first time in nine quarters.”

He added, “Yet, the apartment market continues to record decreasing rent growth and rising vacancy rates as it absorbs the highest level of new supply in more than 30 years.”

Nearly half (45%) of respondents reported better debt financing conditions, compared to 0% who said the same in October. Thirty-five percent of respondents thought that conditions were unchanged, while 14% thought now was a worse time to borrow than three months ago.


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    About Paul Bubny

    Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

    • ◦Sale/Acquisition
    • ◦Financing
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