RISMedia
  • News
  • Premier
  • Publications
  • Events
  • Education
  • Newsmakers
  • Power Broker
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Publications
  • Events
  • Education
  • Newsmakers
  • Power Broker
No Result
View All Result
RISMedia
No Result
View All Result

NAHB: Multifamily Construction Sentiment Improves

Home Latest News
May 22, 2021
Reading Time: 2 mins read
NAHB: Multifamily Construction Sentiment Improves

Exterior view of multifamily residential building under construction in Palo Alto; the entire Silicon Valley and San Francisco Bay Area is facing a housing crisis, with increased housing costs

Confidence in the market for new multifamily housing increased in the first quarter of 2021, according to results from the Multifamily Market Survey (MMS) recently released by the National Association of Home Builders (NAHB). The MMS produces two separate indices. The Multifamily Production Index (MPI) increased eight points to 51 compared to the previous quarter. This is the first time the MPI has been over 50 in seven quarters. Meanwhile, the Multifamily Occupancy Index (MOI) increased one point to 59.

The MPI measures builder and developer sentiment about current conditions in the apartment and condo market on a scale of 0 to 100. The index and all of its components are scaled so that a number above 50 indicates that more respondents report conditions are improving than report conditions are getting worse.

The MPI is a weighted average of three key elements of the multifamily housing market: construction of low-rent units-apartments that are supported by low-income tax credits or other government subsidy programs; market-rate rental units-apartments that are built to be rented at the price the market will hold; and for-sale units-condominiums. All three components increased in the first quarter: the component measuring low-rent units rose four points to 46, the component measuring market rate rental units increased six points to 54 and the component measuring for-sale units jumped 13 points to 52.

This quarter, the report introduces a new index: the Multifamily Occupancy Index, or MOI. The MOI replaces the former Multifamily Vacancy Index, or MVI, and is based on the same underlying data. The MOI measures the multifamily housing industry’s perception of occupancies in existing apartments. It is a weighted average of current occupancy indexes for class A, B and C multifamily units, and can vary from 0 to 100, with a break-even point at 50, where higher numbers indicate increased occupancy. With a reading of 59, the MOI has improved over the last three quarters.

“We continue to see strong demand for rental housing, especially in the suburbs,” said Justin MacDonald, president and CEO of The MacDonald Companies in Kerrville, Texas, and chairman of NAHB’s Multifamily Council. “But an increase in building material prices and difficulties obtaining approvals remain significant headwinds for the industry.”

“The MPI reversed trend and rose strongly in the second quarter of last year, one quarter before a similar turn-around in the multifamily housing starts data,” said NAHB Economist Robert Dietz. “Since then, multifamily starts have mirrored the MPI. The surge that we saw in the MPI for the first quarter of 2021 coincides with a similar surge in multifamily starts to a seasonally adjusted annual rate of more than 450,000 units. Based on these recent numbers, NAHB now expects a gain in multifamily starts this year.”

Source: NAHB

Tags: Housing MarketIndustry NewsMultifamily ConstructionNAHBNational Association of Home BuildersReal Estate
ShareTweetShare
Susanne Dwyer

Susanne Dwyer

Related Posts

9 Low-Cost Ways to Improve Your Listings
Agents

9 Low-Cost Ways to Improve Your Listings

July 4, 2022
Thoughts on Leadership: Leading Like Duke
Brokers

Thoughts on Leadership: Leading Like Duke

July 3, 2022
Creative Marketing Ideas to Move Your Listings Faster
Best Practices

Creative Marketing Ideas to Move Your Listings Faster

July 2, 2022
The July Issue of Real Estate Magazine Is Now Live
Agents

The July Issue of Real Estate Magazine Is Now Live

July 1, 2022
First Guaranty Mortgage Corp. Tacks on Massive Layoffs With Bankruptcy Filing
Agents

First Guaranty Mortgage Corp. Tacks on Massive Layoffs With Bankruptcy Filing

July 1, 2022
Pandemic-Fueled, ‘Astonishing’ Cost-Burden Turnaround
Agents

Pandemic-Fueled, ‘Astonishing’ Cost-Burden Turnaround

July 1, 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Tip of the Day

Break a Leg: How Acting Techniques Can Enhance Your Pitch

Authenticity, emotion and empathy are all a big part of a successful client presentation, and actors have the answers. Read more.

Business Tip of the Day provided by
REGISTER NOW

Recent Posts

  • 9 Low-Cost Ways to Improve Your Listings
  • Thoughts on Leadership: Leading Like Duke
  • Creative Marketing Ideas to Move Your Listings Faster

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.