NMHC: Apt. Sector Takes ‘A Small Step Back'

WASHINGTON, DC-For the first time since the summer of 2009, the four indexes in the National Multi Housing Council‘s quarterly survey of apartment market conditions showed a general retreat from the previous quarter. In separate but related news, apartment data firm Axiometrics on Monday reported that national effective rent growth continued moderating in September, although occupancy rates held steady.

All four market conditions indexes—those measuring market tightness, sales volume, equity financing and debt financing—came in below the break-even level of 50, the first time this has occurred since July ’09, the NMHC reported. “After four years of almost continuous improvement across all indicators, apartment markets have taken a small step back,” says Mark Obrinsky, the council’s Washington, DC-based VP of research and chief economist. “Conditions cannot continue to improve indefinitely and new development is at least somewhat constrained by available capital—though more on the equity than the debt side.”