The National Multifamily Housing Council (NMHC) released the results of their latest Apartment Market Conditions survey, which is based on data compiled from quarterly surveys of NMHC members. The end-April data shows demand for multifamily units continues, but inflation and corresponding rising interest rates have led to heightened concern about the cost of capital.
The survey showed Market Tightness ratings remained above the breakeven level of 50 for the fifth consecutive quarter, at 60 compared to 69 in January, while Sales Volume declined to breakeven at 50. Equity financing dropped from 67 to 35, and Debt Financing declined from 36 to 9.
Debt financing became less available for the third quarter in a row, and equity financing was less available for the first time in six quarters. While survey results indicate NMHC members are divided on whether the availability of debt financing has changed, a whopping 83% responded it is a worse time to borrow now than it was three months ago.
No comments:
Post a Comment
Thanks for your comment! It has been sent to the moderator for review.