Washington, DC, Dec. 7, 2012 -- The Multifamily Production Index released by the National Association of Home Builders remained steady with an index level of 52. It is the third straight quarter with a reading over 50.
The MPI, which measures builder and developer sentiment about current conditions in the apartment and condominium market on a scale of 0 to 100, was essentially unchanged in the third quarter, only dropping two points from 54 in the second quarter.
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.
The index and all of its components are scaled so that any number over 50 indicates that more respondents report conditions are improving than report conditions are getting worse.
“The market-rate apartment and condo markets continue to improve as household formations generate demand,” said W. Dean Henry, CEO of Legacy Partners Residential in Foster City, Calif., and chairman of NAHB’s Multifamily Leadership Board.
“As young households find sustainable employment, most are renting in new apartment communities.”