NMHC: Apartment Demand Holding Up

The turmoil in the financial markets is affecting the apartment sector, but apartment demand is holding up reasonably well, according to the National Multi Housing Council's latest quarterly survey. The trade association reported that its Market Tightness Index, which measures changes in occupancy rates and rents, fell from 44 in the first quarter to 40 in the second. Meanwhile, the availability of debt funding for multifamily properties declined to the second-lowest reading on record for the NMHC's Debt Financing Index, which dropped from 22 to 13. "Demand for apartment residences is holding up relatively well despite the weakening job market and sluggish economy," said Mark Obrinsky, the association's chief economist. "If employment continues to fall, however, we'll likely see apartment demand follow suit." The survey's respondent pool consisted of 89 chief executive officers and other senior executives in the multifamily industry who also serve on the NMHC's board of directors or advisory committee. The council can be found online at http://www.nmhc.org.