by Calculated Risk on 4/22/2025 09:49:00 AM
Today, in the CalculatedRisk Real Estate Newsletter: NMHC on Apartments: Market conditions Tightened in Q1 pre-Tariffs
Excerpt:
From the NMHC: Apartment Market Sees Tighter Conditions, Rebounding Deal Flow and Improved Debt Financing in First Quarter
Changes in U.S. trade policy over the past two weeks have impacted global financial markets, causing stock prices to fall (and then partially recover) and long-term yields to increase amidst a retreat of capital from U.S. Treasuries.
This volatility had a noticeable effect on apartment market sentiment captured in the National Multifamily Housing Council’s (NMHC’s) latest Quarterly Survey of Apartment Market Conditions. More specifically, apartment executives who responded to this month’s survey after the announcement of tariffs on April 2nd—as opposed to the roughly half of respondents who responded in the days prior—were more likely to report worsening conditions for debt and equity financing as well as decreasing sales volume over the preceding three months.
…• The Market Tightness Index came in at 52 this quarter – above the breakeven level of 50 for the first time since July 2022 – indicating tighter market conditions. This also appears to be the only index value that wat not meaningfully affected by market volatility this round (it makes sense that it would take longer to observe changes in the supply and demand for physical apartment space).
However, take this quarter’s survey results with a grain of salt. As economists at the NMHC mentioned, the negative impact of policy was probably not picked up in this quarter’s market tightness index.
There is much more in the article.
