Industry News

Mortgage market troubles boost apartment demand

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The ongoing financial market turmoil and its spillover into the broader economy are having a mixed effect on the apartment sector, as lower sales volume and less available equity are giving way to rising demand from renters, according to the National Multi Housing Council's latest quarterly survey. "The apartment industry is clearly benefiting from the downturn in the for-sale housing industry," NMHC Chief Economist Mark Obrinsky said in a prepared statement. "While the 'shadow' rental market (unsold houses and condos that have left the for-sale market to enter the rental market) may attract some apartment renters (and potential renters), thus far, the lowest home-ownership rate in five-and-a-half years seems to have increased demand for apartment residences." Obrinsky added that, "Overall, the apartment industry remains healthy at this point due to continuing strong fundamentals, and the fact that apartment firms did not overbuild in the latest economic cycle." Almost 80 ...