Posted by: union03g | June 18, 2009

Apartment Market Tightness Index

HUFF sent me the Apartment Market Tightness Index put out by the National Multi-Housing Council and although it effectively illustrates how apartment investment perception has changed historically according to 79 leading CEO’s in the apartment-related industry, I don’t think it’s that useful for deciding when exactly it will be save to invest again, read: “For Rent” signs scare the hell out of potential investors and they are waiting for more predictable CF. That being said, I still really like indexes and data like this even though a real estate investor needs more local data and less national aggregates.

Basically, when each metric is over 50 it indicates an improving condition for owners/investors of apartment buildings (not renters). When the tightness index is over 50 it means rent is perceived to be increasing and vacancies decreasing/financing easier/sales increasing for that period. Check out this neat chart too!

NATIONAL MULTI HOUSING COUNCIL
Quarterly Survey of Apartment Market Conditions
(April 2009)

Market Tightness
Index1

Sales Volume
Index2

Equity Financing
Index3

Debt Financing
Index4

Apr. 2009 16 30 29 41

Jan. 2009

11

12

12

26

Oct. 2008

24

5

4

4

July 2008

40

17

11

13

Apr. 2008

44

13

13

22

Jan. 2008

33

18

24

45

Oct 2007

46

12

22

17

Jul 2007

55

39

48

26

Apr 2007

56

38

53

54

Jan 2007

54

41

56

56

Oct 2006

70

38

58

63

Jul 2006

85

32

50

29

Apr 2006

83

35

50

21

Jan 2006

83

47

54

48

Oct 2005

87

66

54

38

Jul 2005

80

66

61

53

Apr 2005

78

63

63

54

Jan 2005

65

63

64

56

Oct 2004

60

65

59

58

Jul 2004

72

54

54

36

Apr 2004

59

52

67

47

Jan 2004

52

52

61

64

Oct 2003

54

57

54

43

Jul 2003

45

51

49

66

Apr 2003

32

48

51

55

Jan 2003

29

41

52

59

Oct 2002

35

58

62

80

Jul 2002

39

51

65

76

Apr 2002

35

40

48

31

Jan 2002

4

20

36

36

Oct 2001

9

19

33

81

Jul 2001

22

41

48

65

Apr 2001

30

43

45

77

Jan 2001

47

49

54

90

Oct 2000

50

47

43

60

Jul 2000

57

31

45

51

Apr 2000

60

37

49

38

Jan 2000

43

24

39

6

Oct 1999

49

39

39

17

Jul 1999

55

44

50

32

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