Multifamily Production Index Marks Decline in Q4 2015

Washington, DC, February 29, 2016-- The Multifamily Production Index (MPI), released by the National Association of Home Builders, showed a slight weakening as the index declined four points to 52 in the fourth quarter of 2015.

And while the index declined, it is still the sixteenth consecutive reading of 50 or above.

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. All three components of the MPI showed declines in the fourth quarter: low-rent units and market-rate rental units both dropped five points to 50 and 59, respectively, while for-sale units dipped one point to 49.

The Multifamily Vacancy Index (MVI), which measures the multifamily housing industry's perception of vacancies, remained essentially unchanged with an increase of one point to 40, with higher numbers indicating more vacancies. After peaking at 70 in the second quarter of 2009, the MVI improved consistently through 2010 and has been fairly stable since 2011.