Multifamily Production Index Still Shows Improving Conditions
Washington, DC, Nov. 21, 2014 -- The Multifamily Production Index reached 54 in the third quarter, four points below the previous quarter’s reading, according to the National Association of Home Builders.
This is the 11th consecutive quarter with a reading of 50 or above.
Any number over 50 indicates that more respondents report conditions are improving than report conditions are getting worse.
The MPI provides a composite measure of three key elements of the multifamily housing market: construction of low-rent units, market-rate rental units and “for-sale" units, or condominiums.
Although all three components fell from 2014 peaks in the second quarter, all remain at 50 or above.
“Despite the slight drop in the index, multifamily developers remain positive about where the market is headed,” said W. Dean Henry, chairman of NAHB’s Multifamily Leadership Board.
“Current growth in employment is strong enough to fuel demand for multifamily housing.”