By Ted Knutson | GlobeSt.com
The latest quarterly survey of apartment conditions by the National Multifamily Housing Council confirms what has been clear for months: the rental markets are posting strong growth.
Ninety-two percent of the over 100 CEOs and other senior executives of apartment-related firms surveyed by NMHC in July said apartments with low vacancy rates and high rent increases were prevalent compared to 67% in April.
The survey also found that capital market conditions were improving for the asset class as well. At 45%, nearly double the number of leaders in July said it was a better time to borrow considering interest rates and non-rate terms against the 23% who felt that way three months earlier.
Sales of apartments stayed pretty much the same with 60% of the execs reporting the number of deals were up in both surveys.
The same trend held true for equity financing for apartment acquisition or development with 41% of apartment company leaders reporting in July it was more available than three months earlier compared to 42% in April.
Without a doubt, multifamily’s most significant development has been the whopping growth in rents this year. Yardi Matrix, for instance, recently reported asking rents increased by 6.3% in June on a year-over-year basis.
“This is the largest YoY national increase in the history of our data set,” it said.
Rents increased nationally by 1.6% in June on a month-over-month basis. For the third month in a row, all 30 metros had positive month-over-month rent growth.