Multifamily Access to Relief Funds Remains Sluggish
All told, 47% of respondents said they have accessed federal rent relief funds in at least some of their areas of operation.
The National Multifamily Housing Council’s Quarterly Survey of Apartment Market Conditions this month showed overall optimism in the sector, with the organization’s index for market tightness signaling tighter conditions for the first time since October 2019.
But roughly a quarter of all respondents to the NHMC survey indicated they hadn’t received any rent relief funds included as part of the federal Emergency Rental Assistance Program, adding to the angst over the program’s lackluster rollout since its inclusion in the last round of federal stimulus.
All told, 47% of respondents said they have accessed federal rent relief funds in at least some of their areas of operation, with 5% of respondents reporting receiving funds in all areas of operation and 42% in just some areas. Another 16% percent of respondents said that they’ve received relief funds from other sources.
The NHMC’s Market Tightness Index increased from 43 to 81, with 67% of respondents reporting tighter market conditions than in the last three months. The Sales Volume Index increased from 53 to 77, the highest index level in more than a decade, and the Equity Financing Index increased from 58 to 68 with 42% of respondents reporting that equity financing was more available now than in the three months prior. Finally, the Debt Financing Index decreased from 49 to 44, the only index below the breakeven level.
“We are finally seeing improvement in most markets around the country,” said NMHC Chief Economist Mark Obrinsky. “While gateway metros are still generally facing lower occupancy and rent levels compared to a year ago, conditions now appear to be on an upward trajectory. On the other hand, many Sun Belt markets continue to see substantial rent growth and strength in fundamentals..
“Following what we saw as an inflection point last quarter, with a majority of respondents (53%) indicating market conditions were unchanged, two-thirds (67%) of respondents this quarter observed tighter conditions in their apartment markets,” he continued. “We move forward with cautious optimism, as vaccine rollout is well underway and there is hope that all residents will be able to return to work soon.”