The availability of debt and equity financing declined during the most recent quarter, according to the January 2016 National Multifamily Housing Council Quarterly Survey of Market Conditions.
Debt financing for multifamily properties fell 17 points, landing below the breakeven level of 50 at 37. Nearly a third of those surveyed reported declines in borrowing conditions, while only 6% reported improvements.
Equity financing, meanwhile, dropped slightly by six points to 46, again under the breakeven level. Contributing to this was nearly two-thirds of respondents noting no change in equity financing from three months ago.
The survey also reported declines in market tightness and sales volume, to 47 and 46, respectively, marking the first time since October 2013 that all four categories of the survey dipped below the breakeven level.
"After an incredible year for the apartment industry, some weakening has appeared, reflecting seasonal patterns along with additional pullback in some markets," said Mark Obrinsky, senior vice president of research and chief economist at NMHC, in a Jan. 14 news release.
The survey, which was conducted between Jan. 4 and Jan. 11, polled 147 chief executives and other senior executives of apartment-related firms across the country.
