Industry News

Apartment market ‘firing on all cylinders’

Survey: Occupancy rates, rents rising in most markets

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The apartment market in the third quarter remained solidly in the expansion phase of the real estate cycle, albeit at a slower pace than in the second quarter, according to the National Multi Housing Council's (NMHC) October 2006 Quarterly Survey of Apartment Market Conditions. "Demand for apartment residences continues to rise, and should remain strong so long as employment keeps rising," said Mark Obrinsky, NMHC's chief economist. "While the slowdown in the condo market has had some impact on the investment demand for apartment properties, in every other respect the apartment industry seems to be firing on all cylinders." The supply-demand fundamentals are improving; occupancy rates and rents are rising in most markets; and apartment firms are finding it easier to acquire debt and equity. For all four indexes measured in the survey, a reading above 50 indicates that, on balance, conditions are improving; a reading below 50 indicates that conditions are worsening; and a reading of...