National Multifamily Housing Council
Quarterly Survey of Apartment Market Conditions
(October 2014)
 

 

 

Market Tightness Index1

Sales Volume Index2

Equity Financing Index3

Debt Financing Index4

October 2014 52 58 54 71
July 2014 68 56 58 68

April 2014

56

52

53

63

January 2014

41

41

50

42

October 2013

46

46

39

41

July 2013

55

46

49

20

April 2013

54

55

56

59

January 2013

45

49

56

57

October 2012

56

51

56

65

July 2012

76

54

58

77

April 2012

74

57

62

65

January 2012

60

50

60

74

October 2011

52

54

54

70

July 2011

82

70

70

74

April 2011

90

65

76

69

January 2011

78

62

74

48

October 2010

77

84

70

82

 

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, hence 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).

 

1 A Market Tightness Index reading above 50 indicates that, on balance, apartment markets around the country are getting tighter; a reading below 50 indicates that market conditions are getting looser; and a reading of 50 indicates that market conditions are unchanged. 
2 A Sales Volume Index reading above 50 indicates that, on balance, sales volume around the country is increasing; a reading below 50 indicates that sales volume is decreasing; and a reading of 50 indicates that market conditions are unchanged. 
3 An Equity Financing Index reading above 50 indicates that, on balance, equity finance is more available; a reading below 50 indicates that equity finance is less available; and a reading of 50 indicates that equity finance availability is unchanged. 
4 A Debt Financing Index reading above 50 indicates that, on balance, borrowing conditions are improving; below 50 indicates that borrowing conditions are worsening; a reading of 50 indicates borrowing conditions are unchanged.

INDEX TRENDS

QS 2014-10 Charts Svg


SURVEY QUESTIONS
 

Question #1: How are apartment market conditions in the local markets that you watch? “Tight” markets are defined as those with low vacancies and high rent increases. Conditions obviously vary greatly from place to place, but on balance, apartment market conditions in your markets are:

 

October 2014

July 2014

October 2013

Tighter than three months ago

26%

50%

13%

Looser than three months ago

20%

15%

20%

About unchanged from three months ago

52%

35%

67%

Don’t know or not applicable

1%

1%

0%

   

Question #2: What about sales of apartment properties in the local markets you watch? The sales volume (number of deals) currently is:

 

October 2014

July 2014

October 2013

Higher than three months ago

27%

29%

24%

Lower than three months ago

11%

16%

32%

About unchanged from three months ago

56%

51%

44%

Don’t know or not applicable

6%

4%

3%

 

Question #3: What about equity financing for apartment acquisition or development? Considering both price and non-price terms, equity financing today is:

 

October 2014

July 2014

October 2013

More available than three months ago

19%

26%

5%

Less available than three months ago

11%

9%

27%

About unchanged from three months ago

54%

56%

60%

Don’t know or not applicable

15%

8%

8%

 

Question #4: What about the conditions for multifamily mortgage borrowing? Considering both interest rates and non-rate terms, compared to three months ago:

 

October 2014

July 2014

October 2013

Now is a better time to borrow

45%

37%

22%

Now is a worse time to borrow

2%

2%

41%

About unchanged from three months ago

41%

52%

36%

Don’t know or not applicable

12%

9%

2%

 

Question #5: Over the last 12 months, have you seen a significant increase in apartment residents in any of the following categories? (you may choose more than one)

 

 

All Respondents

 

Baby Boomers (50-68 years old) 

 

22%

 

Forty-somethings 

 

21%

Single parents

13%

Married couples with children

4%

 

Note: The October 2014 Quarterly Survey of Apartment Market Conditions was conducted October 14-October 21, 2014; 133 CEOs and other senior executives of apartment-related firms nationwide responded. The July 2014 Quarterly Survey of Apartment Market Conditions was conducted July 14-July 21, 2014; 110 CEOs and other senior executives of apartment-related firms nationwide responded. The October 2013 Quarterly Survey of Apartment Market Conditions was conducted October 7-October 16, 2014; 64 CEOs and other senior executives of apartment-related firms nationwide responded. 


Staff Resource