National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
NMHC Survey Cites Improving Conditions in Apartment Market
All but one of the four indices comprising the National Multifamily Housing Council (NMHC) October 2024 Quarterly Survey of Apartment Market Conditions indicated more favorable conditions this quarter. The Sales Volume (67), Equity Financing (63) and Debt Financing (77) indices all came in above the breakeven level of 50.
The Market Tightness Index came in below the breakeven level for the ninth consecutive quarter, indicating looser market conditions. Beyond the headline number of 37, there was a 13-percentage-point increase in the number of respondents who thought the market was looser now than three months prior: 40%, up from 27% in July.
“The 10-year Treasury yield fell 28 basis points over the past three months as the Federal Reserve enacted its first 50-bp cut to short-term rates,” said NMHC’s economist and senior director of research, Chris Bruen. “Survey respondents, in turn, reported more favorable conditions for debt financing for the third straight quarter and more available equity financing for the first time in two and a half years.”
He noted that “elevated levels of multifamily deliveries” resulted in the looser market conditions reported in the latest survey, “Still, strong demand for apartments has meant that much of this new supply is getting absorbed,” added Bruen.
- ◦Financing
