Multifamily homebuilders have reported a more gloomy view of the state of the industry in the second quarter of 2024 than in the same period of 2023 and the first three months of this year. The findings of a member survey by the National Association of Home Builders (NAHB) reflect declining confidence in both current production conditions and occupancy, as measured by NAHB indices.

The Multifamily Production Index (MPI) measures builder and developer sentiment about current conditions in the apartment and condo market on a scale of 0-100. A score below 50 indicates that more respondents see conditions as poor than as positive. The Multifamily Occupancy Index (MOI) similarly measures member opinions on occupancy.

In 2Q 2024 the MPI achieved a score of just 44 – down 12 points year-over-year, and three points below 1Q 2024. The MOI fared better, but its positive score of 81 was eight points lower than the prior year and two points below the first quarter – though it was an improvement over the score of 77 recorded in 4Q 2023.