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Apartment financing conditions tighten as deal flow declines

NMHC’s Market Tightness Index rose to 57, while its Sales Volume Index fell to 46, signaling reduced apartment deal activity.

Reported · Written up by our desk · Residential

Apartment market conditions tightened over the past three months, according to the National Multifamily Housing Council’s July Quarterly Survey of Apartment Market Conditions, as debt and equity financing became less available and deal flow declined.

The survey said the Market Tightness Index came in at 57, above the breakeven level of 50, pointing to higher rent growth and lower vacancy rates. It also reported the Sales Volume Index at 46, indicating a pullback in deal flow, while both the Equity Financing Index (44) and Debt Financing Index (46) reflected worsening access to capital.

NMHC chief economist Chris Bruen said job growth picked up somewhat during the first half of the year after a lackluster 2025, and that declining apartment deliveries helped drive modestly tighter conditions. He added that rents continued to decrease in many high-supply Sunbelt markets, and that higher inflation has raised interest rates, worsening borrowing conditions and reducing equity capital.

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