Multifamily Execs See Investment Activity Improving

Multifamily Execs See Investment Activity Improving

Investment-sales activity is picking up in the multifamily sector as financing has become more available, according to senior executives of apartment companies.

However, demand from tenants has continued to weaken, according to executives surveyed by the National Multi Housing Council.

"The transactions market may finally be thawing," said Mark Obrinsky, chief economist of the Washington, D.C., group, which represents the nation's largest multifamily firms.

Its quarterly survey measures market tightness, sales volume, equity and debt financing and gauges prospects for each on a scale of 0 to 100, with a reading of 50 being the turning point that would indicate the respective measure is improving.

Each index, except tightness, registered at 50 points or higher in the third-quarter survey, which was conducted from Oct. 14 to Oct. 23.

The sales-volume index hit 55, its first reading above 50 since 2005, while the equity and debt financing indices hit 58 and 59, respectively, each breaching the 50 level for the first time since 2007.

However, the tightness index, which measures leasing activity and rents, hit 31, as weak employment has continued to dampen demand. The index has been below 50 since the second quarter of 2007.

However, the tightness index was up from 20 in the council's second quarter survey, and has been rising for four consecutive quarters.

The sales-volume index rose from 44 in the second quarter, while the equity and debt financing indices each rose from 39.