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Analysis

Apartment Investors Become Pessimistic About Debt Financing

The NMHC indexes for both sales volume and equity financing improved, but market tightness and debt financing scored below the breakeven level.

The apartment market has not yet entered a clear recovery. In January, the National Multifamily Housing Council Indexes for sales volume and equity financing both improved beyond the breakeven point, but market tightness and debt financing continued to show weakness.

NMHC chief economist Mark Obrinsky calls this dynamic the “tale of two markets.” The market challenges—which include higher vacancy and negative rent growth, are concentrated in the urban areas. “Many suburban areas, on the other hand, continue to benefit from an influx of ex-urbanites,” adds Obrinsky.

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Kelsi Maree Borland

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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