Skip to main content

Builders Less Confident in Multifamily Market

Phil Hall
May 24, 2019
Photo credit: Getty Images/sculpies

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.

May 24, 2019
CFPB Issues Guidance On AI In Credit Underwriting

Creditors must provide specific and accurate reasons for credit denials, even with complex AI models.

Sep 19, 2023
Intercontinental Exchange Completes Black Knight Acquisition; Births Dark Matter Technologies Under Constellation Software

Rich Gagliano takes the helm at Dark Matter Technologies, poised to lead the future of Empower LOS with a 1,300-strong team, blending startup agility with decades of industry experience.

Sep 18, 2023
FHFA Invites Public Engagement On Modernized Credit Score Transition

Stakeholder forums and listening sessions planned to ensure seamless rollout; extended timeline for bi-merge credit report requirement in play.

Sep 11, 2023
Desperation Drives Difficulty in Closing Mortgages in California

Analysis reveals California among top 20 toughest states for mortgage closures.

Sep 11, 2023
If You Build It, They Will Come

Ratings will go a long way toward growing the market for home equity-backed securities

Sep 07, 2023
Investors May Be Losing Interest In The Single-Family Rental Market

Rise in interest rates, drop in values have them pulling back in certain regions

Sep 07, 2023