Thursday, October 22, 2015

NMHC: Apartment Market Conditions Slightly Tighter in October Survey

by Bill McBride on 10/22/2015 02:30:00 PM

From the National Multifamily Housing Council (NMHC): NMHC Quarterly Survey of Apartment Conditions October 2015

The Market Tightness Index decreased by 8 points from last quarter (and increased by 1 point from a year earlier) to 53. Thirty-one percent of respondents reported tighter conditions than three months ago.

This is the seventh consecutive quarter where the index indicates tighter conditions.  And the index indicated tighter conditions in 21 of the 23 quarters.

Apartment Tightness Index
Click on graph for larger image.

This graph shows the quarterly Apartment Tightness Index. Any reading above 50 indicates tighter conditions from the previous quarter. This indicates market conditions were tighter over the last quarter.

As I've mentioned before, this index helped me call the bottom for effective rents (and the top for the vacancy rate) early in 2010.