According to the National Multifamily Housing Council (NMHC) October 2024 Quarterly Survey of Apartment Market Conditions, three out of four indices showed positive trends this quarter. The Sales Volume (67), Equity Financing (63), and Debt Financing (77) indices all surpassed the breakeven level of 50.
However, for the ninth consecutive quarter, the Market Tightness Index fell below breakeven levels, indicating looser market conditions. Despite an overall score of 37, there was a significant increase in respondents who believed that market conditions had loosened compared to three months ago – rising from 27% in July to 40%.
Chris Bruen, NMHC’s economist and senior director of research attributed these changes to a decrease in Treasury yields and a cut in short-term rates by the Federal Reserve. This resulted in more favorable conditions for debt financing over three straight quarters and increased availability for equity financing after two-and-a-half years.
Bruen also noted that high levels of multifamily construction have contributed to looser market conditions but strong demand has helped absorb much of this new supply. Overall, NMHC’s survey highlights improving conditions within the apartment market.
