This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Apartment Markets Resume Growth According To NMHC Survey

WASHINGTON, April 18, 2013 /PRNewswire-USNewswire/ -- Apartment markets improved across all areas according to the National Multi Housing Council's (NMHC) April Quarterly Survey of Apartment Market Conditions. All four indexes -- Market Tightness (54), Sales Volume (55), Equity Financing (56) and Debt Financing (59) -- came in above 50, which indicates improving conditions. This reverses last January's findings, where Market Tightness and Sales Volume dipped below 50 for the first time since 2010.

"The apartment industry is operating on cruise control, as the expansion continues unabated," said Mark Obrinsky, NMHC's Vice President for Research and Chief Economist. "While concern about overbuilding has begun to crop up, demand for apartment residences remains strong. New construction may have finally recovered fully, but most units under construction won't be delivered until 2014 or later. The dearth of recent completions has contributed to relatively low product availability. As deliveries increase, we expect to see an even greater pick-up in sales volume."

Key findings include:

Financing remains constrained. One in ten reported construction financing as available for all types of apartments in all markets. In addition, only one quarter thought acquisition financing was available for all properties in all markets.

Market Tightness Index rose to 54 from 45. The index has been above 50 for 12 of the past 13 quarters, with only January 2013 indicating contraction. One quarter of respondents saw markets as tighter, up from 16 percent last quarter.

The Sales Volume Index increased to 55 from 49. Like the Market Tightness Index, the pickup in the Sales Volume Index showed improving conditions again this quarter. Almost one-third (30 percent) reported sales volume was higher while only 20 percent indicated that sales volume was lower.

The Equity Financing Index remained at 56, unchanged from the previous two quarters. This reflects the 15 th quarter in a row with the index above 50. This is the seventh quarter in a row in which the most common response was that equity finance conditions were unchanged from three months ago.

Debt Financing Index increased by two points to 59. One quarter of respondents viewed now as a better time to borrow compared with three months ago, while six percent viewed now as a worse time. This was the ninth consecutive quarter in which the share of respondents who thought debt financing had worsened was in single digits.

Full survey data are available at www.nmhc.org/goto/61161.

About the survey: The April 2013 Quarterly Survey of Apartment Market Conditions was conducted April 8-15, with 85 CEOs and other senior executives of apartment-related firms nationwide responding.  

To view this release online, visit www.nmhc.org/goto/61163.

Based in Washington, D.C., NMHC is a national association representing the interests of the larger and most prominent apartment firms in the U.S. NMHC's members are the principal officers of firms engaged in all aspects of the apartment industry, including owners, developers, managers and financiers. One-third of Americans rent their housing, and over 14 percent live in a rental apartment. For more information, contact NMHC at 202/974-2300, e-mail the Council at info@nmhc.org, or visit NMHC's web site at www.nmhc.org.

SOURCE National Multi Housing Council

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs