Apartment Demand Strengthens in the Q3, Says NMHC

Markets remain tight despite increases in construction

Washington, D.C.—Apartment market conditions improved across all four indexes of the Q3 National Multifamily Housing Council (NMHC) Quarterly Survey of Apartment Market Conditions. The market tightness (53), sales volume (53), equity financing (52) and debt financing (54) indexes all landed above the breakeven level of 50, indicating growth over the past three months.

Consumer demand for apartments increased for the seventh consecutive quarter, with the Market Tightness Index coming in at 53, compared to 61 last quarter. Only 16 percent reported loosening conditions.

The Sales Volume Index remained unchanged at 53, indicating increased transaction volume from the previous quarter. The Equity Financing Index rose by three points to 52 back above the breakeven level of 50. Similarly, the Debt Financing Index bounced back above 50, rising 19 points to 54.

The Quarterly Survey special question asked about construction activity, with more than twice as many respondents (35 percent) indicating more construction activity than those reporting slower activity (14 percent). About half (51 percent) reported construction activity as similar to three months ago.