Industry News

Survey: Fewer renters becoming homeowners

Subprime lending crisis increases apartment demand

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Consumer demand for apartments remains strong as the subprime mortgage meltdown has decreased the number of renters leaving to become homeowners, according to the National Multi Housing Council's July 2007 Quarterly Survey of Apartment Market Conditions. On average, survey respondents reported few changes in the strong market conditions recorded three months ago, with the exception of a significant worsening of debt market conditions. One quarter of respondents said that occupancy rates and/or rents rose during the first quarter of the year, but the majority (59 percent) reported no change. As a result, the survey's Market Tightness Index was virtually unchanged at 55 -- it was 56 in April and 54 in January. (For all four of the survey indexes, a reading above 50 indicates that, on balance, conditions are improving; a reading below 50 indicates that conditions are worsening; and a reading of 50 indicates that conditions are unchanged.) This is the 16th consecutive quarter in which the...