According to October 2012’s Quarterly Survey of Apartment Market Conditions conducted by the National Multi Housing Council (NMHC), the apartment market expanded this quarter, making it the seventh such quarter of growth in a row. The survey defines a growing quarter by a series of metrics that take into account market tightness, equity financing, debt financing, and sales volume. If these metrics all come in at over fifty, the NMHC declares the quarter a growing one. 

While this comes as good news, the survey indicates a moderating trend. Much of the industry’s success stems from healthy demand caused by the housing market collapse and the credit crunch preventing more apartment complexes from breaking ground. Those conditions still generally reign today but with more moderation. Though credit remains tight, it is easier to get than in 2010, hence the less impressive growth of this quarter when compared to earlier examples. 

About the Author: George Subraj, a real estate professional with decades of experience in the apartment industry, works as President for Zara Realty.

Advertisements