WASHINGTON, DC—Fundamentals remain solid for the multifamilyasset class in the second quarter of 2014, according to theNational Multifamily Housing Council's quarterlysurvey of Apartment Market Conditions. Thatobservation includes a still-favorable supply-demand dynamic forowners and developers—an issue that is raised more and more oftenas the apartment industry recovery heads into its fourth year.
For the moment, though, all is well, says NMHC Senior VicePresident of Research and Chief Economist MarkObrinsky in a prepared statement. "Most markets appear tobe absorbing new supply with no downward pressure on rents orvacancies," he says. "The increase in demand continues to outstripthe pickup in new supply.”
The NMCH showed growth in all four indexes that make up thesurvey, with the market tightness (68), sales volume (56), equityfinancing (58) and debt financing (68) indexes all posting quarterover quarter improvements. In addition, this quarter's surveymarked the second quarter in a row with those four categoriesposting above the breakeven level of 50.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
