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NMHC Reports Further Decline in Apartment Market Conditions
Apartment market conditions continued to weaken in the National Multifamily Housing Council’s (NMHC’s) Quarterly Survey of Apartment Market Conditions for July 2023, as the Market Tightness (26), Sales Volume (40), Equity Financing (22) and Debt Financing (18) indexes all came in well below the breakeven level of 50. The Debt Financing Index represented the eighth consecutive quarter of declining availability.
“Both debt and equity capital continue to pull back from the apartment market amidst an environment of rising interest rates and slowing rent growth,” said Caitlin Sugrue Walter, NMHC’s VP of research. “As a result, transaction volume fell for the fifth consecutive quarter, with current apartment owners unwilling to offer the lower prices buyers deem necessary to compensate for this diminished economic outlook.
“Yet, as the Federal Reserve nears the end of its tightening cycle, a small but growing share of respondents are finally starting to report a pickup in apartment deal flow,” she added.
- ◦Sale/Acquisition
- ◦Financing
