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Apartment Market Slowing Down

WASHINGTON, DC-In its quarterly survey, the National Multi Housing Council blames slowing economic conditions for a loosening in apartment markets nationwide, versus placing the blame squarely on fallout from the September 11 terrorist attacks.

By Marlon Millner | Updated on October 22, 2001

WASHINGTON, DC-The National Multi Housing Council recently completed its quarterly survey of conditions in the nation’s apartment market and has determined things have slowed, due more to an economy teetering on the brink of recession than to an economic fallout from the September 11 terrorist attacks. In a statement, the council said 83% of its survey’s respondents said conditions in the markets in which they operate are looser than three months ago. Only 16% said conditions were basically unchanged. As a result, the market tightness index fell for the sixth consecutive quarter to a low of nine.

Nine is the lowest reading in the survey’s two-and-a-half year history. NMHC explained a score below 50 means there are more markets in which conditions are softening, as in slower rent increases and increasing vacancy. A score of 50 means no change. In response to the state of affairs, only a small minority of respondents has pulled back from development or acquisition activity in metropolitan areas where some industries were directly impacted by the terrorists’ attacks, like tourism. But 55% of the surveyed firms said they were pulling back generally from a variety of markets.

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