For the first time since 2010, two of the four NMHC indices – market tightness (45) and sales volume (49) – dipped below 50, though just barely. The two financing indices show continued improvement for the eighth consecutive quarter, as the equity financing index (56) and debt financing index (57) remained above the breakeven level of 50.
‘The pace of improvement in the apartment industry is moderating, but the expansion remains solid,’ says Mark Obrinsky, NMHC's vice president for research and chief economist. ‘Lease-up demand is seasonally weak in January, which would fully explain the small drop in the market tightness index. Beyond that, markets were quite tight three months ago, and remain tight today. New construction has picked up considerably since its 2009 low, but is still playing catch-up with the increase in demand for apartment residences.’
The full survey data isnow available online.