Apartment market conditions remained relatively unchanged over the past three months, according to a new survey from the National Multifamily Housing Council (NMHC).
In its quarterly survey of apartment conditions in April, with insights from nearly 100 CEOs and other senior executives, NMHC’s four indexes came in close to the breakeven level of 50, pointing to an environment without strong momentum in either direction, noted chief economist Chris Bruen.
- The Market Tightness Index at 49 indicates looser market conditions compared with three months ago. Under a quarter of the respondents, 24%, reported looser market conditions compared with 43% in January, while 23% said they thought conditions were tighter, up from 7% three months ago. Over half of respondents cited unchanged conditions compared with January.
- The Sales Volume Index at 52, up from 47 in January, signals an increase in deal flow. Over a quarter of respondents, 27%, reported an increase in sales volume, while 23% reported a decrease. Almost half of respondents, 44%, reported unchanged conditions.
- The Equity Financing Index dropped to 49 after two quarters above the breakeven mark. Over two-thirds of respondents, 39%, found equity conditions unchanged from January, while 19% reported equity being more available and 22% less available.
- The Debt Financing Index reading plummeted to 51 from 75 in January. Being above the breakeven level indicates improving conditions, but respondents were mixed. Over a quarter of the respondents, 28%, reported it being a better time to borrow than three months ago, while 27% said they think now is a worse time to borrow, significantly above the 3% in January. A third reported unchanged conditions.
“The outbreak of war in the Middle East in late February has led to higher oil prices, inflation, interest rates, and a general sense of economic uncertainty,” Bruen said. “This has caused multifamily executives to lower their expectations for total 2026 multifamily sales volume and starts.”
He added that survey respondents continued to report market conditions largely holding steady. When asked how their expectations have changed since the start of the year, 37% of respondents said they expect sales volume to be lower than originally anticipated in January, 23% believe sales volume will be higher, and 29% reported no changes in their expectations.
Respondents were more pessimistic about their expectations for multifamily starts. A third said they expect starts this year to be lower than what they anticipated in January, while 11% have revised their expectations upward. Over half, 52%, reported no change in their expectations.