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
Giants 400 | Dec 2, 2020
2020 Airport Sector Giants: Top architecture, engineering, and construction firms in the U.S. airport facilities sector
AECOM, Hensel Phelps, and PGAL top BD+C's rankings of the nation's largest airport sector architecture, engineering, and construction firms, as reported in the 2020 Giants 400 Report.
Giants 400 | Nov 29, 2020
Top 40 Engineering Architecture Firms for 2020
Jacobs, AECOM, and Kimley-Horn top the rankings of the nation's largest engineering architecture (EA) firms for nonresidential buildings and multifamily buildings work, as reported in Building Design+Construction's 2020 Giants 400 Report.
Giants 400 | Nov 29, 2020
Top 155 Architecture Firms for 2020
Gensler, Perkins and Will, and HKS Architects top the rankings of the nation's largest architecture firms for nonresidential and multifamily buildings work, as reported in Building Design+Construction's 2020 Giants 400 Report.
Giants 400 | Nov 29, 2020
Top 100 Architecture Engineering Firms for 2020
Stantec, HDR, and HOK head the rankings of the nation's largest architecture engineering (AE) firms for nonresidential and multifamily buildings work, as reported in Building Design+Construction's 2020 Giants 400 Report.
Government Buildings | Nov 25, 2020
New Indiana Toll Road headquarters creates unified environment for staff
New LEED Gold facility consolidates operations for tollway authority.
Architects | Nov 24, 2020
AEC Leaders share lessons from past downturns
Positions of passivity and cost-cutting run counter to the key lessons from AEC leaders who successfully navigated their firms through past market downturns.
Smart Buildings | Nov 20, 2020
The Weekly show: SPIRE smart building rating system, and pickleball court design tips
The November 19 episode of BD+C's The Weekly is available for viewing on demand.
Transportation & Parking Facilities | Nov 13, 2020
BIG and Kilo-designed Pegasus Pod transports first Hyperloop passengers
The pod achieves Hyperloop travel at speeds over 1000km/hour.
Government Buildings | Nov 13, 2020
Tax shortfalls nip government projects in the bud
Federal contracts are proceeding, but states and cities are delaying, deferring, and looking for private investment.
AEC Tech | Nov 12, 2020
The Weekly show: Nvidia's Omniverse, AI for construction scheduling, COVID-19 signage
BD+C editors speak with experts from ALICE Technologies, Build Group, Hastings Architecture, Nvidia, and Woods Bagot on the November 12 episode of "The Weekly." The episode is available for viewing on demand.