NMHC Quarterly Survey of Apartment Market Conditions:
Market Indexes
July 2003

The reported index numbers are based on data compiled from quarterly surveys of NMHC members. Survey responses reflect the change, if any, from the previous quarter.  The indexes are standard diffusion indexes, so that they have leading indicator properties and are convenient summary measures showing the prevailing direction and scope of changes.  They are calculated by taking one-half the difference between positive (tighter markets, higher sales volume, equity financing more available, a better time to borrow) and negative (looser markets, lower sales volume, equity financing less available, a worse time to borrow) responses and adding 50.  This produces a series bounded by 0 (if all respondents answered in the negative) and 100 (if all respondents answered in the positive).

¹A Market Tightness Index reading above 50 indicates that, on balance, apartment markets around the country are getting tighter; a reading below 50 that market conditions are getting looser; and a reading of 50 indicates market conditions are unchanged.

²A Sales Volume Index reading above 50 indicates that, on balance, sales volume around the country is increasing; a reading below 50 that sales volume is decreasing; and a reading of 50 indicates market conditions are unchanged.

³An Equity Financing Index reading above 50 indicates that, on balance, equity finance is more available; a reading below 50 that equity finance is less available; and a reading of 50 indicates equity finance availability is unchanged.

⁴A Debt Financing Index reading above 50 indicates that, on balance, borrowing conditions are improving; a reading below 50 that borrowing conditions are worsening; and a reading of 50 indicates borrowing conditions are unchanged.

NMHC Quarterly Survey of Apartment Market Conditions
(July 2003)   

Note: The July 2003 survey was conducted July 14-21, 2003. Sixty-one CEOs and other senior executives of apartment-related firms nationwide who serve on NMHC's Board of Directors or Advisory Committee responded. The April 2003 survey was conducted April 14-21, 2003; 68 responded. The July 2002 survey was conducted July 22-29, 2002; 60 responded.