Apartment industry showing gains as 2012 moves along

The apartment industry is experiencing improvements.

Property management companies may be witnessing heightened interest in the market, as apartment optimism is increasing, according to a report from the National Multi Housing Council.

The council's Quarterly Survey of Apartment Conditions showed that all four of its indexes were above the threshold level of 50 during the first quarter, which showed that growth was witnessed across the industry compared to the final months of 2011.

Sales Volume rose to 57 from the previous quarter's 50, the report noted. In addition, the Market Tightness indicator increased to 74 from the previous figure of 60, while the Equity Financing statistic rose to 62 from the previous level of 60. The Debt Financing level actually dropped to 65 from the previous quarter's 74, but it was still considered to be growth.

"The strength of the sector's recovery has attracted capital to the industry," said Mark Obrinsky, chief economist for NMHC. "But our latest survey finds that capital is largely targeted at top-tier properties in core markets and not widely available throughout the U.S. Fully 79 percent of respondents said capital was constrained either by property type, by market or both."

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