Apartment market conditions tightened over the past three months, with conditions for debt and equity financing worsening while deal flow decreased, the National Multifamily Housing Council (NMHC) reported in its July Quarterly Survey of Apartment Market Conditions. However, rent growth and vacancies represented a bright spot.
The Market Tightness Index (57) came in above the breakeven level of 50, indicating higher rent growth and lower vacancies. The Sales Volume Index (46) signaled a pullback in deal flow, while the Equity Financing Index (44) and the Debt Financing Index (46) reflected less availability of capital.
“Job growth picked up somewhat during the first half of the year after a lackluster 2025,” said Chris Bruen, NMHC senior director of research and chief economist. “This, combined with declining apartment deliveries, helped translate to modestly tighter conditions—higher rent growth and lower vacancy rates—over the past three months.”
He continued, “Even so, rents continued to decrease in many high-supply sunbelt markets. At the same time, higher inflation has led to higher interest rates, worsening borrowing conditions, and a corresponding pullback in equity capital.”
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