Multifamily Builder Sentiment Improves in Q2

Washington, DC, Sept. 7, 2012 -- The Multifamily Production Index released by the National Association of Home Builders improved for the eighth consecutive quarter with an index level of 54. It is the highest reading since the second quarter of 2005.

The MPI, which measures builder and developer sentiment about current conditions in the apartment and condominium market on a scale of 0 to 100, rose from 51 in the first quarter to 54 in the second quarter.

The MPI provides a composite measure of three elements of the multifamily housing market: construction of low-rent units, market-rate rental units and “for-sale" units, or condominiums.

Any number over 50 indicates that more respondents report conditions are improving than report conditions are getting worse.

In the second quarter, the MPI component tracking builder and developer perceptions of market-rate rental properties recorded a level of 63 and has been over 60 for four consecutive quarters—the longest sustained period of strength since the inception of the index in 2003.

For-sale units had its highest reading since the fourth quarter of 2005, coming in at 41, while low-rent units recorded an all-time high of 61.

“The apartment and condo housing sector is continuing on a path of steady recovery as new construction has increased to try to keep up with current consumer demand,” said W. Dean Henry, CEO of Legacy Partners Residential in Foster City, Calif., and chairman of NAHB’s Multifamily Leadership Board.
“However, credit continues to be an issue for many developers around the country, making it difficult to keep pace with this demand.”

“The strength of the MPI suggests that multifamily production is likely to increase somewhat going forward,” said NAHB Chief Economist David Crowe. “Multifamily production has already recovered substantially from a historic low of about 110,000 starts a year in 2009 and 2010 to the current annual rate of a little over 200,000. However, prior to the downturn multifamily starts remained about 300,000 per year for 12 consecutive years, so there is room for further improvement before apartment and condo production return to normal, sustainable levels.”



Other Archived Articles

Armstrong Develops Web-Based Tool for Retailers   Full Article
Lancaster, PA, Feb. 18, 2015 -- Armstrong Floor Products has rolled out what it calls an Advertising & Promotion Center.

Distributor Haines Names Two Vice Presidents   Full Article
Glen Burnie, MD, Feb. 18, 2015 -– Distributor Haines has named Mike Barrett vice president of operations and Bill Rothenbach vice president of human resources.

Producer Prices Tumble on Lower Energy Costs   Full Article
Washington, DC, Feb. 18, 2015 -- Producer prices declined 0.8% in January largely due to falling energy prices, according to the Labor Department.

Housing Starts, Permits Dip in January   Full Article
Washington, DC, Feb. 18, 2015 -- Residential construction starts declined 2% in January to an annual rate of 1.07 million units, according to the Commerce Department.

Dixie Group Reports Loss on Higher Sales   Full Article
Chattanooga, TN, Feb. 18, 2015 -- The Dixie Group, Inc. reported a fourth quarter net loss of $5.2 million, compared to a profit of $1.59 million a year ago.

Mortgage Applications Decline on Higher Rates   Full Article
Washington, DC, Feb. 18, 2015 -- Mortgage application volume plunged last week as interest rose to their highest level this year, according to the Mortgage Bankers Association.

Fuse Alliance Adds Two Members   Full Article
Laguna Niguel, CA, Feb. 18, 2015 -- Fuse Alliance said it has added two new dealer partners in the U.S.

Architecture Billings Contract Slightly in January   Full Article
Washington, DC, Feb. 18, 2015 -- Following a nine-month stretch of positive billings, the Architecture Billings Index showed no increase in design activity in January.

Heavy Snow Dampens Builder Confidence   Full Article
Washington, DC, Feb. 17, 2015 -- Homebuilder confidence fell slightly in February due largely to heavy snow in much of the country, according to the National Association of Home Builders.

New York Manufacturing Expansion Slows   Full Article
New York, NY, Feb. 17, 2015 -- The New York Federal Reserve’s manufacturing index showed that conditions improved at slower rate in February.

NWFA Offers Discounts Through CCA Global Division   Full Article
St. Louis, MO, Feb. 17, 2015 -- The National Wood Flooring Association has announced its new Business Marketplace program, in partnership with BizUnite, to provide members discounts in many business operations.

Surfaces Exhibitors Donate Flooring from Show   Full Article
Las Vegas, NV, Feb. 17, 2015 -- Exhibitors at Surfaces last month committed to donating 140,765 pounds of used flooring to the Mountain Re-Source Center.

Floors and More Wins Chamber Award   Full Article
Benton, AR, Feb. 16, 2015 -- Floors and More recently won a 2014 Small Business Award from the Bryant chamber of commerce.

Patent Board Rules for Tandus in Dispute with Interface   Full Article
New York, NY, Feb. 16, 2015 -- The Patent Trial and Appeal Board has ruled in favor of Tandus Flooring in a dispute with Interface regarding a patent on an installation system, according to Law 360.

IICRC Moves Headquarters to Las Vegas   Full Article
Las Vegas, NV, Feb. 16, 2015 -- The Institute of Inspection, Cleaning and Restoration Certification said it is moving its headquarters to its Global Resource Center in Las Vegas.

Kährs Acquires Minority Stake in Pozgaj Flooring   Full Article
Stockholm, Sweden, Feb. 16, 2015 -- Wood and resilient maker Kährs Group said it has acquired a minority stake in recently formed Croatian Pozgaj Flooring.

Consumer Sentiment Falls from January Peak   Full Article
Ann Arbor, MI, Feb. 13, 2015 -- Consumer sentiment declined in February after reaching an 11-year high in January, according to the Thomson Reuters/University of Michigan index.

Mohawk Group Sponsors HPD Collaborative   Full Article
Calhoun, GA, Feb. 13, 2015 -- Mohawk Group said it has become part of a growing list of “Visionary” sponsors of the Health Product Declaration Collaborative.

Earthwerks Signs Distributor Longust   Full Article
Houston, TX, Feb. 13, 2015 -- EarthWerks said it has signed a distribution agreement with Longust Distributing, Inc. to cover the southwestern U.S.

NAHB Analyzes Data on Boomerang Millennials   Full Article
Washington, DC, Feb. 13, 2015 -- A recent study of “Boomerang Millennials” may have important implications for this key demographic and what it means for the housing market, according to the National Association of Home Builders.