Builders Less Confident in Multifamily Market – NMP Skip to main content

Builders Less Confident in Multifamily Market

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.

 
About the author
Published
May 24, 2019
The Fed Held. The Mortgage Market Got A Warning.

Three policymakers favored an immediate hike, while Warsh welcomed higher bond yields and offered no clear path toward mortgage-rate relief

Jul 30, 2026
New Study Finds UWM's 'All-In' Triggered Industrywide Pricing Spillovers

Research shows wholesale competitors responded to the 2021 Rocket ban by lowering mortgage rates,

Jul 15, 2026
First Major Housing Reform In Decades Becomes Law Without Trump's Signature

Bipartisan ROAD to Housing Act advances supply, construction, and mortgage reforms despite White House protest

Jul 10, 2026
Mortgage Star Conference Honors Women Shaping The Future Of Mortgage Leadership

MWLC honors leaders driving innovation, mentorship, and growth across the mortgage industry

Jul 09, 2026
June Jobs Report Improves Mortgage Rate Outlook

Slower hiring strengthens bonds and eases concerns over additional Fed tightening

Jul 02, 2026
NEXA Founder Mike Kortas Launches evoLend To Help Originators Retain Borrowers

New Fannie Mae-, Freddie Mac- and Ginnie Mae-approved mortgage servicer aims to keep originators connected to borrowers through servicing data, payoff visibility and retention tools

Jul 02, 2026