The rental market continues to be strong as challenging conditions for homeowners continue to frighten potential new homebuyers away from home ownership.
The apartment industry continues its broad-based recovery, according to the National Multi Housing Council’s (NMHC) latest Quarterly Survey of Apartment Market Conditions.
For the second consecutive quarter, 60% of respondents said markets were tighter (lower vacancies and/or higher rents) than three months ago. The Market Tightness Index recorded its second-highest January reading on record at 78. (A reading above 50 indicates improving market conditions.)
“Rising apartment demand reflects a drop in demand for homeownership in today’s marketplace,” said NMHC Chief Economist Mark Obrinsky. “This growing demand against the backdrop of the lowest apartment starts in 40 years—barely enough to offset the units lost to demolition and obsolescence—will result in further tightening in the apartment sector in the near term.”