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NMHC: Multifamily Market Report Shows Improved Conditions
Apartment market conditions improved across three of the four indexes measured by the July National Multifamily Housing Council (NMHC) Quarterly Survey of Apartment Market Conditions. The Sales Volume (55), Equity Financing (56) and Debt Financing Indexes (55) all increased to above the breakeven level of 50, while the Market Tightness Index came in at 46.
NMHC Chief Economist Mark Obrinsky says, “The apartment industry is showing small, but unmistakable signs of improvement. The Market Tightness Index continues to show some weakening. However, the number of respondents who reported looser conditions fell to 29%, the lowest share since January of 2016.”
Key findings:
- Market Tightness Index (46) was the only index to remain below 50, marking the 11th consecutive quarter of overall declining conditions
- Sales Volume Index rose to 55, the first time the index has indicated breakeven or improving conditions since July 2016
- Equity Financing Index increased from 54 to 56, indicating overall improving conditions for the third straight quarter
- Debt Financing Index rose from 36 to 55, with over one-quarter of respondents (27%) reporting improving conditions for debt financing compared to three months prior
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