Builder and developer confidence for new multifamily housing dipped in the second quarter according to a new survey by the National Association of Home Builders.
The Multifamily Production Index, which measures builder and developer sentiment about current conditions in the apartment and condo market, dropped three points to 48 compared to the previous quarter. The trade group explained a number below 50 indicates that more respondents report conditions are getting worse than report conditions are improving.
"The MPI softened slightly in the second quarter while multifamily production continued to increase, but it is typical for the MPI to turn one to three quarters before starts," said NAHB Economist Robert Dietz. "Nevertheless, the MPI remains as strong as it was at any point in 2020, and NAHB expects more apartments to be started in 2021 than in 2019 or 2020."
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