NMHC quarterly survey shows positive development for rental industry
The National Multi Housing Council's latest quarterly survey revealed improvement in all measured areas of the multifamily industry, the seventh quarter that has been true out of the last eight.
All four indices went up, according to the organization. The Debt Financing Index reached 74 from a previous level of 70, with half of respondents saying now is a good time to borrow, compared to 22 percent a year ago. Meanwhile, the Market tightness Index grew to 60, while the Sales Volume and Equity Financing Indices finished the quarter at readings of 50 and 60, respectively.
All grew except the sales volume index, which was previously at 54. This was the lowest it has been since July 2009, but marks the tenth consecutive quarter it has been measured at or above 50.
"In the face of an unprecedented virtual shutdown of development, the apartment market continues its strong recovery as developers play catch-up to the growing demand for rental housing," said NMHC chief economist Mark Obrinsky.
He predicted the pace of transactions is expected to slow in 2012, but also noted long-term demographic shifts seem to favor rental housing. These trends could be beneficial for all investors and rental managers not just those working with apartments, particularly with the currently limited supply of housing and affordability issues of homeownership.
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