The National Multi Housing Council’s debt financing index increased by two points to 59, as the percentage of apartment property buyers who felt conditions to obtain debt financing worsened in the recent quarter was in the single digits for the ninth consecutive quarter.
Any score above 50 indicates improving conditions. For the
NMHC said one-quarter of the respondents feel now is a better time to borrow compared with three months ago, while 6% said it was worse.
The survey found that one-quarter felt acquisition financing is available for all types of properties in all markets.
As for construction financing, one in 10 feel it is available for all types of apartments in all markets.
NMHC’s equity financing index remained at 56, unchanged from the previous two quarters.
“The apartment industry is operating on cruise control, as the expansion continues unabated," said Mark Obrinsky, NMHC's vice president for research and chief economist. "While concern about overbuilding has begun to crop up, demand for apartment residences remains strong.
“New construction may have finally recovered fully, but most units under construction won't be delivered until 2014 or later. The dearth of recent completions has contributed to relatively low product availability. As deliveries increase, we expect to see an even greater pick-up in sales volume."
