NMHC: Apartments Poised for Turnaround?

Conditions in the apartment sector may have hit bottom and could be poised for a turnaround, according to the National Multi Housing Council.In the NMHC's latest quarterly survey of apartment market conditions, three of its four indices were "hovering around 50," the score representing a neutral position between improving (above 50) and deteriorating (below 50) conditions. "While it is still too early to say we have turned the corner, this quarter's survey results offer the first real glimmer of hope," said Mark Obrinsky, chief economist of the Washington-based group. The Market Tightness Index (measuring changes in vacancy rates and rents) stood at 45 in July, its highest level in two-and-a-half years, the NMHC said. Financing conditions showed the biggest improvement in the second quarter, the council said, as the Debt Financing Index rose from 55 in April to 66 in July. The organization can be found online at http://www.nmhc.org.