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Multifamily Developers Still Lack Confidence to Build, But Occupancy is High

Supply-chain problems and high interest rates remain barriers to construction.

By Philippa Maister | February 18, 2025 at 05:40 AM

Multifamily construction is expected to continue to slow in the first six months of the year, with a possible pickup in the second half, according to a survey of its members by the National Association of Home Builders (NAHB).

The findings returned a score of 48 on its Multifamily Production Index (MPI), indicating that builders’ confidence in the market remained below the breakeven point of 50, which would encourage them to consider building again. This was the sixth consecutive quarter since 3Q 2023 when the MPI failed to rise to 50 or above.

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