NMHC: Apartment Sector Remains Soft

While the pace of renters leaving to pursue homeownership is slowing down, conditions in the apartment sector remain soft as a result of the slack job market, according to the National Multi Housing Council."Right now, it's all about jobs," said Mark Obrinsky, chief economist of the Washington-based group, which represents multifamily interests. "Demand for apartment residences remains below normal levels in most metro areas and is likely to stay that way until we see a sustained pickup in employment." The NMHC's recent quarterly survey of apartment market conditions also found that financing conditions improved in the first quarter, with more than a quarter of survey respondents saying that debt financing (mortgage rates and borrowing terms) had improved. In addition, almost 60% of the respondents indicated that equity financing conditions remained unchanged. The market tightness index rose slightly to 32 in April, up from 29 in January, indicating increased market tightness, as manifested in rent increases and vacancy changes, the council said.