The National Association of Home Builders (NAHB) reports to MHProNews the Multifamily Production Index (MPI), which measures builder sentiment in the multifamily and condominium marketplace, remained steady with a reading of 52, the third consecutive month of readings over 50. Any number over 50 indicates more builders think conditions are better rather than worse. The MPI is a composite derived from construction of low-rent units, market-rate rentals, and for sale units like condos. The market-rate rental component alone hit 69 in Q3 2012, marking the fifth consecutive quarter registering over 60. Meanwhile, the Multifamily Vacancy Index, which measures perceived vacancies by the industry, dropped three points to 33 (the lower the number the fewer the vacancies), after hitting the peak of 70 in Q2 2009. “The multifamily market has recovered substantially since the end of 2010, and now stands at about 70 percent of the way back to a sustainable level. Our baseline forecast calls for further steady growth in the rate of multifamily production,” said NAHB Chief Economist David Crowe.
