National apartment conditions could be showing signs of improvement, according to apartment owners than responded to the National Multifamily Housing Council's Quarterly Survey of Apartment Market Conditions.

The market tightness index increased from 19 to 35, which indicates a loosening market. According to the survey, 49% of respondents said that market conditions were looser than in the prior three months. Only 18% of respondents said that market conditions are tighter than the prior three months, while 33% of respondents thought the market conditions were unchanged. According to NMHC chief economist Mark Obrinsky, market conditions are continuing to deteriorate, but the market tightness index shows that there is growing variation in the market outlook from respondents.

Other areas of the survey show improving market conditions. The sales volume index increased from 18 to 72, and 60% of respondents reported higher sales volume than the prior three months. This was significant majority. Only 16% of respondents in the survey said that sales volumes decreased compared to the prior three months, and 19% found the market unchanged. This data shows that investment capital is returning to the market after retreating at the start of the pandemic. Historically low interest rates and greater availability of debt has helped drive capital back to the market.