MF Sector Poised for Recovery?

The National Multi Housing Council has reported that its latest quarterly survey of apartment market conditions indicates that the multifamily sector could be on the verge of recovery, based on responses from senior multifamily executives.The Washington, D.C.-based trade association said three of the four indices used to measure changes in apartment market conditions registered an over-50 reading in its October survey, which means that more survey respondents see improving conditions than worsening conditions. "These are the most positive numbers we have seen since the onset of the 2001 recession," said Mark Obrinsky, the NMHC's vice president of research and chief economist. "If the economy continues to strengthen and employment finally starts to bounce back, then we can expect to see demand for apartment residences rise and vacancy rates fall." The NMHC's market tightness, sales volume, and equity financing indices all rose for the period. The association's debt financing index was the only one that dipped, falling to 46, which the NMHC said is probably the result of higher mortgage rates.