flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Apartment market index: Business conditions soften, but still solid

Multifamily Housing

Apartment market index: Business conditions soften, but still solid

Despite some softness at the high end of the apartment market, demand for apartments will continue to be substantial for years to come, according to the National Multifamily Housing Council. 


By National Multifamily Housing Council | July 27, 2017
The apartment market continues to remain strong despite slightly softer business conditions as of late.

Photo: Pixabay

All four indexes of the National Multifamily Housing Council’s (NMHC) July Quarterly Survey of Apartment Market Conditions remained slightly below the breakeven level of 50, the fourth consecutive quarter indicating softening conditions. The Market Tightness (43), Sales Volume (47), Equity Financing (46), and Debt Financing (47) Indexes all improved from April, but still hovered just below 50.

“All four indexes are below 50 but rising, suggesting that the softening is less wide-spread than in previous quarters,” said Mark Obrinsky, NMHC’s SVP of Research and Chief Economist. “Despite some softness at the high end of the apartment market—due to construction having finally ramped up to the level needed—demand for apartments will continue to be substantial for years to come.”

The Market Tightness Index edged up from 41 to 43, as almost half of respondents (48 percent) reported unchanged conditions. One-third (33 percent) of respondents saw conditions as looser than three months ago, while the remaining 19 percent reported tighter conditions. This marks the seventh consecutive quarter of overall declining conditions.

 

 

The Sales Volume Index increased from 30 to 47, just shy of the breakeven level of 50. Twenty-seven percent of respondents reported higher sales volume than three months prior, compared to 33 percent that reported lower volume.

The Equity Financing Index increased four points to 46, with almost a quarter (24 percent) of respondents believing that equity financing was less available than three months prior. Sixteen percent thought that equity financing was more available compared to three months ago.

The Debt Financing Index increased from 41 to 47, showing a similar trend to the equity market. While a quarter of respondents (25 percent) reported worse conditions for debt financing compared to three months prior, another 19 percent disagreed, believing conditions had become more favorable.

About the Survey:
The July 2017 Quarterly Survey of Apartment Market Conditions was conducted July 10-July 17, 2017; 123 CEOs and other senior executives of apartment-related firms nationwide responded.

Related Stories

| Jun 19, 2013

New York City considers new construction standards for hospitals, multifamily buildings

Mayor Michael Bloomberg’s administration has proposed new building codes for hospitals and multifamily dwellings in New York City to help them be more resilient in the event of severe weather resulting from climate change.  

| Jun 17, 2013

DOE launches database on energy performance of 60,000 buildings

The Energy Department today launched a new Buildings Performance Database, the largest free, publicly available database of residential and commercial building energy performance information.

| Jun 13, 2013

AIA partners with industry groups to launch $30,000 'Designing Recovery' design competition

The program will award a total of $30,000 to three winning designs, divided equally between three locations: Joplin, Mo., New Orleans, and New York. 

| Jun 12, 2013

5 building projects that put the 'team' in teamwork

The winners of the 2013 Building Team Awards show that great buildings cannot be built without the successful collaboration of the Building Team. 

| Jun 11, 2013

Vertical urban campus fills a tall order [2013 Building Team Award winner]

Roosevelt University builds a 32-story tower to satisfy students’ needs for housing, instruction, and recreation.

| Jun 11, 2013

Finnish elevator technology could facilitate supertall building design

KONE Corporation has announced a new elevator technology that could make it possible for supertall buildings to reach new heights by eliminating several problems of existing elevator technology. The firm's new UltraRope hoisting system uses a rope with a carbon-fiber core and high-friction coating, rather than conventional steel rope.

| Jun 5, 2013

USGBC: Free LEED certification for projects in new markets

In an effort to accelerate sustainable development around the world, the U.S. Green Building Council is offering free LEED certification to the first projects to certify in the 112 countries where LEED has yet to take root.

| Jun 4, 2013

SOM research project examines viability of timber-framed skyscraper

In a report released today, Skidmore, Owings & Merrill discussed the results of the Timber Tower Research Project: an examination of whether a viable 400-ft, 42-story building could be created with timber framing. The structural type could reduce the carbon footprint of tall buildings by up to 75%.

| Jun 3, 2013

6 residential projects named 'best in housing design' by AIA

The Via Verde mixed-use development in Bronx, N.Y., and a student housing complex in Seattle are among the winners of AIA's 2013 Housing Awards.

| Jun 3, 2013

Construction spending inches upward in April

The U.S. Census Bureau of the Department of Commerce announced today that construction spending during April 2013 was estimated at a seasonally adjusted annual rate of $860.8 billion, 0.4 percent above the revised March estimate of $857.7 billion.

boombox1
boombox2
native1

More In Category




halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021