Builders Less Confident in Multifamily Market

May 24, 2019

Builder confidence in the market for new multifamily housing frayed during the first quarter, according to the latest Multifamily Market Survey (MMS) released by the National Association of Home Builders (NAHB).

The MMS consists of two indices. The first is the Multifamily Production Index (MPI), which dropped seven points to 40 compared to the previous quarter. This is the lowest MPI reading since the third quarter of 2010. All three components of the MPI fell during the quarter: the component measuring low-rent units dipped by one point to 47, the component measuring market rate rental units slid seven points to 42 and the component measuring for-sale units tumbled down 13 points to 31.

The second index within the MMS, the Multifamily Vacancy Index (MVI) rose three points to 48, with higher numbers indicating more vacancies. This is the highest MVI reading since the first quarter of 2010.

"Builders and developers are being cautious to see what happens with projects that were recently completed," said Gary Campbell, CEO of Gilbert G. Campbell Real Estate in Lowell, Mass., and chairman of NAHB’s Multifamily Council. "However, we're seeing that developers are reasonably optimistic about what's ahead for units on the affordable end of the spectrum."

In May, builder confidence in the market for newly-built single-family homes took a three-point rise to 66, according to the latest National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) data, marking the highest level of confidence since October 2018.

About the author

Phil Hall

Link copied

Published

May 24, 2019

Industry News

Newfi And Addy AI Announce Partnership

Newfi and Addy AI today announced a collaboration focused on the continued evolution of artificial intelligence in mortgage lending

Newfi and Addy AI today announced a collaboration focused on the continued evolution of artificial intelligence in mortgage lending.Newfi has built innovative lending products and a modern approach to the mortgage market. As the industry evolves, the company continues to exp...

Analysis and Data

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

Homebuyers are putting less money down than they were a year ago, another sign that increased inventory and greater negotiating room are changing the purchase market.The typical down payment fell to $27,100 in the second quarter of 2026, the lowest second-quarter dollar amou...

Nov

Houston, TX

More from

Industry News

CHLA: More Freddie Mac MBS Buying Could Narrow Mortgage Spreads

Trade group estimates greater Freddie participation could compress spreads another 10 to 12 basis points as Fannie has taken the lead in GSE mortgage-bond buying

Industry News

Sep 23, 2026

Early Loan-Limit Race Splits Into Three Tiers

Lenders are now offering $845,000, $847,440, or $850,000 before FHFA sets the official 2027 limits

Industry News

Sep 23, 2026

Better, Garg Clash Over Claimed 46% Shareholder Support

Better disputes its former CEO’s preliminary consent count as the two sides trade accusations and an Oct. 2 target date approaches

C-Suite Strategies

Sep 23, 2026

Fannie Changes How Rent From A Former Home Counts

Fannie now prohibits leases for departing residences and permits market-analysis tools instead of Form 1007, creating a key documentation difference from Freddie Mac

Regulation and Compliance

Sep 22, 2026

MPF Expands Eligibility For Manufactured And Renovation Loans

The Mortgage Partnership Finance Program has expanded MPF Traditional eligibility for affordable loans, manufactured homes, renovations, and lender-funded assistance

Industry News

Sep 22, 2026