Apartment sector recovery is ‘complete’

Quarterly survey shows improved conditions across the board

For the fourth quarter in a row, senior apartment executives report improvements in four key apartment market indicators – occupancy rates, sales volume and debt and equity availability – according to the National Multi Housing Council's July 2005 Quarterly Survey of Apartment Market Conditions. "With a record two-thirds of respondents noting tighter market conditions, I think it's time to say that the apartment market has completed its recovery," said NMHC Chief Economist Mark Obrinsky. "That's a significant achievement in the face of two powerful headwinds: the surge in home ownership and the most sluggish job market recovery on record." The Market Tightness Index, which measures changes in vacancy rates and rents, rose to a record-level high of 80 in July. This is the eighth consecutive quarter that respondents have reported lower vacancy rates and/or higher rents over the last 90 days. Already high investor demand for apartments remains unabated. A record 41 perce...