National Multi Housing Council Survey Shows Apartment Market Still in Decline

May 15, 2009

A recent survey by the National Multi Housing Council (NMHC) showed that, while the apartment market conditions are still suffering from a downturn, the pace is slowing down. The survey showed that all four market indexes remained below 50, indicating worsening conditions, but they all rose from three months ago.

“This global downturn has led to the most challenging economic conditions in at least five decades, and the apartment industry is suffering like other industries,” Mark Obrinsky, chief economist at NMHC, said. “Capital remains difficult to obtain, and the sharp and continuing drop in employment, in particular, is sapping demand for apartments in markets throughout the country.”

Specific statistics revealed by the NMHC survey include that the Market Tightness Index, measuring change in occupancy rates and rents, rose from 11 last quarter to 16, and that 73 percent of survey respondents said the markets were looser (meaning higher vacancy, lower rents). Additionally, the Sales Volume Index rose from 12 to 30, the highest level in seven quarters. The Equity Financing Index increased from 12 to 29: Although 46 percent of respondents stated that they thought the equity financing conditions were worse than three months ago, this is the best reading in almost two years. And finally, the Debt Financing Index rose from 26 to 41, with 14 percent of respondents saying that now is a better time to borrow than three months ago.

For full survey results, please visit

Voice your opinion!

To join the conversation, and become an exclusive member of Buildings, create an account today!

Sponsored Recommendations

Building Better Schools

Download this digital resource to better understand the challenges and opportunities in designing and operating educational facilities for safety, sustainability, and performance...

Tips to Keep Facility Management on Track

How do you plan to fill the knowledge gap as seasoned facility managers retire or leave for new opportunities? Learn about the latest strategies including FM tech innovations ...

The Beauty & Benefits of Biophilic Design in the Built Environment

Biophilic design is a hot trend in design, but what is it and how can building professionals incorporate these strategies for the benefits of occupants? This eHandbook offers ...

The Benefits of Migrating from Analog to DMR Two-Way Radios

Are you still using analog two-way radios? Download this white paper and discover the simple and cost-effective migration path to digital DMR radios that deliver improved audio...