FORM 10-QSB--QUARTERLY REPORT UNDER SECTION 13 OR 15(D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                        QUARTERLY OR TRANSITIONAL REPORT
                  (As last amended by 34-32231, eff. 6/3/93.)


                    U.S. SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549


                                  FORM 10-QSB


[X]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES 
      EXCHANGE ACT OF 1934


                 For the quarterly period ended March 31, 1997

                                       or

[ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES 
      EXCHANGE ACT OF 1934

               For the transition period from.........to.........


                         Commission file number 0-13454



                         NATIONAL PROPERTY INVESTORS 7
       (Exact name of small business issuer as specified in its charter)



         California                                           13-3230613
(State or other jurisdiction of                           (I.R.S. Employer
incorporation or organization)                             Identification No.)

   One Insignia Financial Plaza
   Greenville, South Carolina                                     29602
(Address of principal executive offices)                        (Zip Code)


                    Issuer's telephone number (864) 239-1000



Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the preceding 12 months (or for such
shorter period that the registrant was required to file such reports ), and (2)
has been subject to such filing requirements for the past 90 days.
Yes  X  . No      .



                        PART I - FINANCIAL INFORMATION


ITEM 1.  FINANCIAL STATEMENTS


a)                         NATIONAL PROPERTY INVESTORS 7

                           CONSOLIDATED BALANCE SHEET
                                  (Unaudited)
                        (in thousands, except unit data)

                                 March 31, 1997



Assets
  Cash and cash equivalents                                       $  3,843
  Escrow deposits                                                      792
  Other assets                                                         861
  Investment properties:
    Land                                         $  3,738
    Buildings and related personal property        41,404
                                                   45,142
    Less accumulated depreciation                 (22,790)          22,352

                                                                  $ 27,848


Liabilities and Partners' Capital (Deficit)
Liabilities
  Accounts payable and accrued expenses                           $    434
  Tenants' security deposits                                           139
  Mortgage notes payable                                            20,309


Partners' Capital (Deficit):
  General partner                                $   (233)
  Limited partners (60,517 units issued
       and outstanding)                             7,199            6,966
  
                                                                  $ 27,848


          See Accompanying Notes to Consolidated Financial Statements



b)                       NATIONAL PROPERTY INVESTORS 7

                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (Unaudited)
                      (in thousands, except per unit data)


                                                         Three Months Ended
                                                             March 31,
                                                          1997        1996

Revenues:
  Rental income                                         $ 1,751     $ 1,740
  Interest income                                            38          19
  Other income                                               62          54
       Total revenues                                     1,851       1,813

Expenses:
  Operating                                                 560         551
  General and administrative                                 55          80
  Maintenance                                               180         248
  Depreciation                                              418         414
  Interest                                                  410         390
  Tax                                                       108         103
       Total expenses                                     1,731       1,786

Net income                                              $   120     $    27

Net income allocated to general partner (1%)            $     1     $    --
Net income allocated to limited partners (99%)              119          27

Net income                                              $   120     $    27

Net income per limited partnership unit                 $  1.96     $   .44


          See Accompanying Notes to Consolidated Financial Statements


c)                      NATIONAL PROPERTY INVESTORS 7

             CONSOLIDATED STATEMENTS OF PARTNERS' CAPITAL (DEFICIT)
                                  (Unaudited)
                        (in thousands, except unit data)







                                  Limited
                                Partnership  General   Limited
                                   Units     Partner   Partners    Total
    
Original capital contributions     60,517    $     1   $ 30,259 $ 30,260

Partners' (deficit) capital
  at December 31, 1996             60,517    $  (234)  $  7,080 $  6,846

Net income for the three
  months ended March 31, 1997                      1        119      120

Partners' (deficit) capital
  at March 31, 1997                60,517    $  (233)  $  7,199 $  6,966


          See Accompanying Notes to Consolidated Financial Statements


d)                          NATIONAL PROPERTY INVESTORS 7

                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (Unaudited)
                                 (in thousands)



                                                        Three Months Ended
                                                             March 31,
                                                          1997       1996
Cash flows from operating activities:
  Net income                                           $   120     $    27
  Adjustments to reconcile net income to
  net cash provided by operating activities:
   Depreciation                                            418         414
   Amortization of loan costs                               28          16
   Change in accounts:
     Escrow deposits                                      (167)        (33)
     Other assets                                          122         200
     Accounts payable and accrued expenses                 (44)        195
     Tenants' security deposit liabilities                 (10)         (7)

       Net cash provided by operating activities           467         812

Cash flows from investing activities:
  Property improvements and replacements                  (119)        (48)
  Increase in restricted cash                               --        (412)

       Net cash used in investing activities              (119)       (460)

Cash flows from financing activities:
  Mortgage principal repayments                             (8)        (78)
  Loan costs paid                                          (13)        (23)
  Distributions                                         (1,955)         --

       Net cash used in financing activities            (1,976)       (101)

Net (decrease) increase in cash and cash equivalents    (1,628)        251

Cash and cash equivalents at beginning of period         5,471       2,277

Cash and cash equivalents at end of period             $ 3,843     $ 2,528

Supplemental information:
  Interest paid                                        $   383     $   358


          See Accompanying Notes to Consolidated Financial Statements


e)                        NATIONAL PROPERTY INVESTORS 7

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (Unaudited)


NOTE A - BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB and Item 310(b)
of Regulation S-B. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
consolidated financial statements.  In the opinion of NPI Equity Investments,
Inc., the Managing General Partner, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have been
included.  Operating results for the three month period ended March 31, 1997,
are not necessarily indicative of the results that may be expected for the
fiscal year ending December 31, 1997.  For further information, refer to the
consolidated financial statements and footnotes thereto included in the
Partnership's annual report on Form 10-KSB for the year ended December 31, 1996.

Certain reclassifications have been made to the 1996 information to conform to
the 1997 presentation.

NOTE B - TRANSACTIONS WITH AFFILIATED PARTIES

The Partnership has no employees and is dependent on the Managing General
Partner and its affiliates for the management and administration of all
partnership activities. The Partnership Agreement provides for payments to
affiliates for services and as reimbursement of certain expenses incurred by
affiliates on behalf of the Partnership. Balances and other transactions with
affiliates of the Managing General Partner during the period ended March 31,
1997 and 1996 are (in thousands):

                                                     For the Three Months Ended
                                                              March 31,
                                                         1997         1996
Property management fees (included in operating
  expenses)                                              $ 92          $ 90
Reimbursement for services of affiliates (included
  in general and administrative expenses)                  39            53


Included in "reimbursements for services of affiliates" for 1997 is
approximately $1,000 in reimbursements for construction oversight costs.

Since January 19, 1996, the Partnership insured its property under a master
policy through an agency and insurer unaffiliated with the Managing General
Partner.  An affiliate of the Managing General Partner acquired, in the
acquisition of a business, certain financial obligations from an insurance
agency which was later acquired by the agent who placed the current year's
master policy.  The current agent assumed the financial obligations to the
affiliate of the Managing General Partner who received payments on these
obligations from the agent.  The amount of the Partnership's insurance premiums
accruing to the benefit of the affiliate of the Managing General Partner by
virtue of the agent's obligations is not significant.

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

The Partnership's investment properties consist of five apartment complexes.
The following table sets forth the average occupancy of the properties for the
three months ended March 31, 1997 and 1996:

                                                     Average
                                                    Occupancy
Property                                         1997       1996
Fairway View II Apartments
  Baton Rouge, Louisiana                          93%        94%

Northwoods Apartments
  Pensacola, Florida                              93%        95%

Patchen Place Apartments
  Lexington, Kentucky                             87%        93%

The Pines Apartments
  Roanoke, Virginia                               97%        99%

South Point Apartments
  Durham, North Carolina                          95%        98%


The Managing General Partner attributes the decrease in occupancy at Patchen
Place Apartments to a soft market caused by increased competition as a result of
newly constructed units.  In addition, Patchen Place had some deferred
maintenance which was addressed due to the refinancing in November of 1996.
With these improvements, the Managing General Partner anticipates an increase in
traffic and occupancy.  The decrease in occupancy at South Point was due to
increased competition as a result of newly constructed units, which are in the
same market niche as that of South Point.

The Partnership's net income for the three months ended March 31, 1997, was
approximately $120,000 compared to net income of approximately $27,000 for the
same period of 1996.  The increase in net income is primarily due to an increase
in interest income and decreases in maintenance and general and administrative
expenses.  The decrease in maintenance expense is primarily due to the
completion of repair work in 1996 related to a fire at Fairway View II in 1995.
Included in maintenance expense is $33,000 of major repairs and maintenance
comprised of parking lot repairs, swimming pool repairs, and golf carts for the
quarter ended March 31, 1997.  The decrease in general and administrative
expense is due to a decrease in expense reimbursements in 1997.  Increased
expense reimbursements in 1996 were attributable to the combined transition
efforts of the Greenville, South Carolina, and Atlanta, Georgia, administrative
offices during the year-end close, preparation of the 1995 10-K and tax return
(including the limited partner K-1s), and transition of asset management
responsibilities to the new administration.  The increase in interest income is
due to increases in interest-bearing reserves.

As part of the ongoing business plan of the Partnership, the Managing General
Partner monitors the rental market environment of its investment properties to
assess the feasibility of increasing rents, maintaining or increasing occupancy
levels and protecting the Partnership from increases in expense.  As part of
this plan, the Managing General Partner attempts to protect the Partnership from
the burden of inflation-related increases in expenses by increasing rents and
maintaining a high overall occupancy level.  However, due to changing market
conditions, which can result in the use of rental concessions and rental
reductions to offset softening market conditions, there is no guarantee that the
Managing General Partner will be able to sustain such a plan.

At March 31, 1997, the Partnership had cash and cash equivalents of
approximately $3,843,000 compared to approximately $2,528,000 at March 31, 1996.
Net cash provided by operating activities decreased primarily as a result of a
decrease in accounts payable and accrued expenses and an increase in escrow
deposits.  Accounts payable and accrued expenses decreased due to the timing of
payments to vendors.  Escrow deposits increased due to the requirements of the
November 1996 refinancings.  Net cash used in investing activities decreased due
to a decrease in deposits to the restricted cash balances, partially offset by
an increase in property improvements and replacements. Net cash used in
financing activities increased due to the Partnership making a distribution in
January 1997, that was accrued at December 31, 1996.

The Partnership has no material capital programs scheduled to be performed in
1997, although certain routine capital expenditures and maintenance expenses
have been budgeted.  These capital expenditures and maintenance expenses will be
incurred only if cash is available from operations or is received from the
capital reserve account.

The Managing General Partner has extended to the Partnership a credit line of up
to $500,000.  At the present time, the Partnership has no outstanding amounts
due under this line of credit.  Based on present plans, management does not
anticipate the need to borrow in the near future.  Other than cash and cash
equivalents, the line of credit is the Partnership's only unused source of
liquidity.


The sufficiency of existing liquid assets to meet future liquidity and capital
expenditure requirements is directly related to the level of capital
expenditures required at the properties to adequately maintain the physical
assets and other operating needs of the Partnership.  The mortgage indebtedness
of approximately $20,309,000 is amortized over varying periods with required
balloon payments ranging from February 1, 2001 to November 1, 2003, at which
time the properties will either be refinanced or sold.  No cash distributions
were paid in 1996, although a distribution was declared and accrued at December
31, 1996.  In January 1997, the Partnership distributed the accrued amount of
approximately $1,955,000 to the partners. Approximately $1,935,000 ($31.97 per
limited partnership unit) was distributed to the limited partners and
approximately $20,000 was distributed to the general partners. The distributions
originated from refinancing proceeds of Fairway View II, Patchen Place,
Northwoods I & II, and South Point, of approximately $1,561,000, and the
remaining amount originated from operations of approximately $394,000.  At this
time, it appears that the investment objective of capital growth will not be
attained and that investors will not receive a return of all of their invested
capital.  Future cash distributions will depend on the levels of cash generated
from operations, property sales, and the availability of cash reserves.




                          PART II - OTHER INFORMATION


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

     a)  Exhibits:

             Exhibit 27, Financial Data Schedule, is filed as an exhibit to
             this report.

      b) Reports on Form 8-K:

             None were filed during the quarter ended March 31, 1997.

                                   SIGNATURES

In accordance with the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.





                           NATIONAL PROPERTY INVESTORS 7


                           By:  NPI EQUITY INVESTMENTS, INC.
                                MANAGING GENERAL PARTNER



                           By:  /s/William H. Jarrard, Jr.
                                William H. Jarrard, Jr.
                                President and Director


                           By:  /s/Ronald Uretta
                                Ronald Uretta

                                Treasurer
                                (Principal Financial Officer
                                and Principal Accounting Officer)


                           Date:  April 22, 1997