WASHINGTON, DC-According to the National Multi Housing Council, current market indicators point to a recovery for the apartment industry. The membership organization has concluded in its October 2004 quarterly Survey of Apartment Market Conditions that occupancy rates, sales volume, equity availability and debt market conditions all improved compared to the previous quarter, thereby verifying the market’s recovery. The positive news marks the second time in the survey’s five years in existence that all for indices were better than those seen in the previous quarter.

As per the report, the Market Tightness Index, which measures vacancy and rent rates, was 60; numbers above 50 indicate that more respondents experienced improved conditions in their area than those who saw worsening conditions. With regard to property sales, the Sales Volume Index reached 65, compared to last quarter’s 54. The Equity Financing Index reached 59, a five-point increase over the second quarter of the year, and the Debt Financing Index surpassed last quarter’s numbers by a whopping 22 points at 58.

“The combination of modest economic growth, strong demographic trends, and the rising cost of homeownership compared with renting is leading to greater demand for apartment residences,” says Mark Obrinsky, NMHC’s chief economist. “Right now the only thing holding the industry back is the still-weak labor market.”

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