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
Newrez Expands Into Personal Loans, Deepening Ties With Upgrade

The launch builds on a $1.5 billion loan investment relationship between parent Rithm Capital and Upgrade, extending Newrez's push beyond traditional mortgage lending

Nov 12, 2026
Better's Mortgage Volume Rises 15%, But Losses Persist

Better is targeting a bigger share of wholesale lending, with plans to expand into Non-QM and conventional mortgages

Nov 10, 2026
Strong Jobs Report Threatens Mortgage Rate Rally

October hiring more than doubled expectations, pushing Treasury yields higher

Nov 06, 2026
Fed Holds Rates, But Pricing Pressures Persist

Rising Treasury yields and fresh inflation data complicate rate locks, borrower qualification, and lender margins as markets anticipate another hike in December

Oct 29, 2026
Zippy Adds Capital For Manufactured-Home Lending Push

The $20 million investment from Saluda Grade will support expansion beyond 27 states and new loan products across wholesale, retail, and community channels

Oct 16, 2026
Inflation Hits 3.7%, Putting Mortgage Rate Relief At Risk

September’s inflation pickup puts recent rate improvements at risk, potentially eroding affordability gains from lower home prices and seller concessions

Oct 14, 2026