The National Association of Home Builders (NAHB) reports the Multifamily Production Index (MPI) fell slightly in the fourth quarter 2013 to 50, which means half of the builders saw the market as good and the other half as poor. The survey measures builders’ perceptions of three aspects of the market: Construction of low-rent units, market-rate rental units, and for sale units (condominiums), and this marks the eighth consecutive reading of 50 or better. Meanwhile, as MHProNews.com has learned, the Multifamily Vacancy Index (MVI), which measures the multifamily housing industry’s perceptions fell two points to 38, wherein lower numbers means fewer vacancies. The MVI peaked at 70 in the second quarter of 2009, improved during 2010 and has remained fairly steady since then.
“This quarter’s MPI results are in line with NAHB’s forecast that calls for increased production of new apartments in 2014, but at a slower pace than last year,” said NAHB Chief Economist David Crowe. “The results are also in line with recent downturns in other economic indicators, due to unusually severe weather in parts of the country that disrupted supply chains and affected confidence in several sectors of the economy.” ##
