WASHINGTON, DC—The multifamily sector falteredfor the first time in more than two years, as the NationalMultifamily Housing Council's Quarterly Survey ofApartment Market Conditions fell below the break-even level of 50,indicating a decline over the past quarter. "After an incredibleyear for the apartment industry, some weakening has appeared,reflecting seasonal patterns along with additional pullback in somemarkets," says Mark Obrinsky, SVP of research andchief economist at NMHC.

All four indexes in the latest quarterly survey came in belowthe break-even mark. Market Tightness registered an index of 47,Sales Volume and Equity Financing both came in at 46 and DebtFinancing registered 37. The latter registered a 17-basis pointdecline from October of last year, following a 19-bp increase fromthe previous quarter; the other quarterly declines were in thesingle digits. The last time all four indexes slipped below 50 wasOctober 2013.

"2015 was one for the record books," Obrinsky says."Construction of new apartments rose to the highest level in almost30 years, while the occupancy rate continued to climb and rentgrowth accelerated." The year was also a record-setter forinvestment sales volume: JLL reported Wednesdaythat multifamily sales reached $139 billion last year, topping2014's $106 billion by 31%.