NMHC: Apartment Sales Continue Pulling Back
Apartment market conditions continued to weaken in the National Multifamily Housing Council’s (NMHC) Quarterly Survey of Apartment Market Conditions for October 2023. The survey’s Market Tightness (21), Sales Volume (24), Equity Financing (18) and Debt Financing (9) indexes all came in well below the break-even level of 50.
“A combination of rising interest rates and tightening lending standards has caused a decrease in the availability of debt financing for the ninth consecutive quarter,” said NMHC’s VP of research, Caitlin Sugrue Walter. “Buyers and sellers of apartments, meanwhile, remain unable to agree to terms on pricing, resulting in the sixth consecutive quarter of declining sales volume.”
She added, though, “Continued softness in the apartment market means that we should expect the shelter component of inflation to come down eventually as well, which could help overall inflation to cool to the Fed’s 2% target and allow the Federal Reserve to start easing policy. Over the longer term, demand for multifamily housing remains strong based on demographic trends and market fundamentals.”
Don’t miss real-time key insights from multifamily’s leading power players from Florida, the Southeast, Mid-Atlantic and Gulf Coast next month! Register to attend Connect Apartments 2023 on Nov 29 in Key Biscayne, FL. Click here to register.