Multifamily Execs See Market Retreating

Obrinsky notes that the “the underlying demand for apartment residences remains strong.”

WASHINGTON, DC—For the consecutive second quarter, apartment conditions as measured by the National Multifamily Housing Council’s quarterly survey showed signs of ebbing. All four indexes in the survey remained below the break-even level of 50, and two of those indexes retreated considerably from the previous quarter.

“Weaker conditions are evident across all sectors as the apartment industry adjusts to changing conditions,” says Mark Obrinsky, SVP and chief economist with NMHC. “Rising supply—particularly during a seasonally weak quarter—is causing rent growth to moderate in many markets.” Fifty-eight percent of survey respondents reported looser market conditions in terms of vacancies and high rent increases, compared to 49% reporting looser conditions in the October 2016 survey and 16% who said this a year ago.