Even as financing makes commercial real estate investors see red, an index revealing steady high occupancy rates and rising rents, provide further evidence the national rental market is in the pink.

The National Multi Housing Council's (NMHC) April 2006 Quarterly Survey of Apartment Market Conditions released a Market Tightness Index that remained at 83 for the January to April period.

An index reading above 50 indicates that, on balance, conditions are improving; a reading below 50 indicates that conditions are worsening; and a reading of 50 indicates that conditions are unchanged.

It was the fourth consecutive quarter for an index of at least 80, a level unattained in the seven-year history of the survey.

Seventy-two percent of the 75 senior executives of apartment-related firms nationwide who also serve on NMHC's Board of Directors or Advisory Committee reported tighter conditions. That was the second highest number on record. Only 5 percent reported looser conditions.

For renters, that's relatively bad news. Shopping around and longer rental contracts to lock in rents are advised.

The NMHC report comes on the heels of several other reports revealing favorable conditions for landlords.

• John Burns founder of Irvine, CA-based RealEstateConsulting.com dubbed "2006: The Year of the Apartment" because home prices -- up 13 percent in the last year and 58 percent in the past five years nationwide -- have moved beyond the reach of many middle-income households, forcing them to rent.

• Novato, CA-based RealFacts said first quarter data revealed demand for rental homes generated a 94 to 95 percent occupancy rate and a 5 to 6 percent annual rent increase rate in many markets. RealFacts monitors some 11,300 apartment complexes of 100 units or more, in a swath of 15 states largely concentrated to the west of the Mississippi River, but also Florida and Indiana.

• National Real Estate Investor's senior associate editor Parke M. Chapman, reported recently a ripple effect was moving through the homes-for-sale market in the South, where lingering increases in home prices are destined to set off a similar trend in rents.

But as rents and occupancies were improving, landlords' costs were rising.

NMHC's Debt Financing Index dropped sharply to 21, the lowest level since January 2000. The vast majority, 69 percent of the senior executives said borrowing conditions had worsened, due largely to steadily rising interest rates. Mortgage financing remained widely available.

NMHC's Sales Volume Index also dropped, to 35, the lowest level in more than four years. The index revealed there were more markets with a lower volume of sales of apartment properties than there were markets with higher sales volume. Only 9 percent of respondents noted higher sales volume than three months earlier.

Also, NMHC's Equity Financing Index slipped to 50, indicating that equity finance conditions were unchanged.

"In fact, the 12 percent of respondents that reported equity financing is more available today was exactly offset by the 12 percent of respondents who said equity financing is less available. The clear majority (69 percent) noted that conditions were unchanged," NMHC reported.