NAHB reports: Multifamily builder confidence up from record lows – NMP Skip to main content

NAHB reports: Multifamily builder confidence up from record lows

May 27, 2009

Recent hints of optimism in the housing industry appear to have spread to the multifamily sector, according to the latest results of Multifamily Rental Market Index (MRMI) and the Multifamily Condo Market Index (MCMI), released by the National Association of Home Builders (NAHB).   “Multifamily builders are beginning to see slight improvement in the current market for new rental and for-sale units, and anticipate even better times in the next six months,” said David Crowe, NAHB’s chief economist. “The components of the index measuring customer interest rose significantly; the index level of calls from prospective renters rose 14 points, to 50.9, and the index reflecting traffic in prospective condo buyers jumped 25 points.”   The indexes gauging current production conditions remain low, but two of them – low-rent units and for-sale units – increased from the fourth quarter 2008. The index for production of low-rent units increased nearly four points to 26.3. The for-sale sector, after two quarters of index levels in the single digits, now shows starts for condo developments at an index level of 14.5, down only slightly from last year’s first quarter.   NAHB’s Multifamily Market Indexes are derived from quarterly surveys of multifamily builders and developers, in which they rank their perceptions of the current conditions and expectations for the new future as “good,” “fair,” or “poor.” The responses are used to create a scale of 0 to 100, with a rating of 50 generally indicating that the number of positive responses is about the same as the number of negative responses.   The near future appears more promising to builders than any time since the first quarter of 2008. Builder expectations for starts of affordable rentals six months from now hit 38.1; market rate rentals were at 31.1, and for-sale units rose nearly 13 points to hit 25.4.   While rental vacancy rates remain high – dropping slightly from last quarter’s 8.7 percent to 8.5 percent – both numbers are lower than last year’s first quarter number – 10.3 percent. And the index numbers for calls from prospective renters was up to 50.9, after two quarters in the high 30s. Condo traffic index numbers shot up from the mid-teens in the last two quarters to 39.3, approximating the 40.2 level of the first quarter of 2008 – possibly in response to the $8,000 first-time buyer tax credit included in the stimulus package.   According to Crowe, “The stock of existing homes for rent and for sale is greater than the consumer demand right now, and is in direct competition with new supply. As that inventory is absorbed, and as new households form during the economic recovery, the demand for multifamily rentals will rise, and production will return to a more ‘normal’ level.”   For more information, visit www.nahb.com.  
About the author
Published
May 27, 2009
Jobs Report Comes In Weak After Mortgage Rates Surge

Employers added just 29,000 jobs in September, sending Treasury yields lower and offering a potential counterweight to the recent rise in mortgage rates

Oct 02, 2026
Price Cuts Hit Four-Year High As Mortgage Rates Top 7%

More than one in five listings took a price cut in September, but pending sales still posted their sharpest annual decline since March 2025

Oct 01, 2026
Serious Mortgage Delinquencies Rise 19% After Five Months Of Improvement

ICE data shows 574,000 mortgages were at least 90 days past due in August, while early-stage delinquencies remained below year-ago levels

Sep 29, 2026
Smaller Down Payments Give Buyers More Room, But Rates Limit The Savings

The typical down payment fell 9% from a year ago, while shifting market conditions are giving originators different affordability conversations across the country

Sep 25, 2026
Mortgage Rates Break 7% Just As Builders Find A Way To Move Buyers

New-home sales rose 6.4% in August as builders cut prices, offered incentives, and sold more lower-priced homes. Now mortgage rates are moving against buyers again

Sep 25, 2026
Borrowers Want Digital Closings, But Some Originators Remain Hesitant

ServiceLink finds 45% of surveyed LOs cite borrower reluctance as a barrier, even though most recent buyers say digital options would influence their choice of mortgage provider

Sep 23, 2026