Multi-family Housing Remains Strong in Third Quarter

Washington, DC, November 20, 2015 -- The Multi-family Production Index, which measures builder and developer sentiment, increased one point to a level of 56 for the third quarter, according to the National Association of Home Builders.

This is the 15th consecutive quarter with a reading of 50 or above.

Any number over 50 indicates that conditions are improving.

The index measures construction of low-rent units, market-rate rental units and condominiums. The MPI component tracking low-rent units increased one point to 55 and market-rate rental units rose four points to 64 while for-sale units dropped three points to 50.  

The Multi-family Vacancy Index increased five points to 39.

“Multi-family builders and developers continue to report that the market is doing quite well,” said W. Dean Henry, chairman of NAHB’s Multi-family Leadership Board. “We did see a slight rise in the MVI, primarily due to large supply coming online in the previous quarter, but with demand remaining strong we expect those vacancies will be absorbed.”

“The consistent MPI reading over 50 aligns with the fact that the multi-family market has recovered and will continue to do well,” said NAHB Chief Economist David Crowe. 

“This positive growth is due in part to a strengthening labor market, which has enabled millennials to find jobs and create their own households.”