Two of the MPI’s three components were down in the third quarter: market-rate rental units and for-sale units both fell 17 points to 43 and 40, respectively, while low-rent units saw a one-point uptick to 54. Separately, the NAHB’s Multifamily Vacancy Index (MVI) increased three points to 41, with lower numbers indicating fewer vacancies. The MVI peaked at 70 in the second quarter of 2009.
“Multifamily production had been quite strong, although it slowed down in the past three months,” said NAHB Chief Economist Robert Dietz. “And with approximately 600,000 units in the pipeline, builders and developers are taking a cautious approach until they see how the market absorbs these units when they come online.”