Apartment Market Could be Headed for Recovery

WASHINGTON, DC-The National Multi Housing Council has released news indicating that the less-than-stellar vacancy rates and negative rent growth around the country could be due for a turnaround. According to NMHC’s October Survey of Apartment Market Conditions, more survey participants experienced improved conditions at their properties during the third quarter, a sure sign that recovery could be at hand.

The study employs three markers to evaluate the status of the apartment market: the Market Tightness Index, which assesses vacancy rates and rent increases, the Sales Volume Index, and the Equity Financing Index. The Market Tightness Index took a big leap, making it past the 50-point mark for the first time since 2000 at 54 points. Continuing its steady status over the 50-mark, the Sales Volume Index came in at 57, and the Equity Financing Index increased to 54.