The latest edition of the National Multifamily Housing Council’s (NMHC) Quarterly Survey of Apartment Market Conditions revealed a mix of results, according to NMHC on Monday. The Debt Financing and Sales Volume indexes showed more favorable conditions this quarter, while Equity Financing and Market Tightness fell below the breakeven level.
According to NMHC, there are signs of a rebound in deal flow and transaction opportunities despite challenges with equity financing availability and tight monetary policies. 45% of respondents believed that apartment transaction opportunities remained unchanged from three months ago, but 28% saw an increase in properties fitting their criteria for transactions compared to three months prior. In contrast, 19% reported fewer suitable properties on the market.
Chris Bruen, NMHC economist and senior director or research stated that concessions have become common in markets with high levels of deliveries as overall market conditions continue to loosen for eight consecutive quarters due to strong demand absorbing new supply at a healthy pace.
Bruen also noted that over the past three months inflation has approached Federal Reserve’s target rate leading to more favorable debt financing conditions along with increased sales volume for two consecutive quarters despite reports from most respondents indicating no change in overall market conditions.
This survey was conducted by Connect CRE.
