Sentiment among builders in the U.S. multifamily market appears to have reached a point where there is little hope of a sharp revival of the battered market, based on responses to the National Association of Home Builders (NAHB) quarterly survey for 4Q 2023.
That may not be surprising given that apartment construction is peaking near its highest level in 50 years.
The NAHB's overall Multifamily Production Index (MPI) for the quarter came in at 41 – well below the score of 50 that indicates a kind of tipping point. The MPI measures how builders and developers feel about production conditions in the apartment and condo market. A score below 50 is not good news. The index of 41, though lower than the 56 recorded in 2Q 2023, is higher than the 38 recorded in 3Q 2023.
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