Multifamily Production Index Remains Positive in Q4

Washington, DC, Feb. 27, 2015 -- The Multifamily Production Index released by the National Association of Home Builders held steady with a reading of 54 for the fourth quarter of 2014.

This capped the third straight year of quarterly readings consistently at 50 or above, which indicates improving conditions.

The MPI measures builder and developer sentiment about current conditions in the apartment and condominium market.

“Demand for multifamily housing remains strong and we continue to build new units to meet this need,” said W. Dean Henry, CEO of Legacy Partners Residential in Foster City, Calif., and chairman of NAHB’s Multifamily Leadership Board.

“Because of strong job growth, we expect to be able to keep building for the foreseeable future.”

The Multifamily Vacancy Index, which measures the multifamily housing industry's perception of vacancies, dropped two points to 39, with lower numbers indicating fewer vacancies.

“This quarter’s MPI reading of 54 is in line with our view that the multifamily segment of the industry has largely recovered from the downturn,” said NAHB Chief Economist David Crowe.

“After increasing steadily over the past several years, multifamily production has now reached a healthy, sustainable level.”