The Multifamily Production Index (MPI), released by the National Association of Home Builders (NAHB), remained steady with an index level of 52. It is the third straight quarter with a reading over 50. The MPI, which measures builder and developer sentiment about current conditions in the apartment and condominium market on a scale of 0 to 100, was essentially unchanged in the third quarter, only dropping two points from 54 in the second quarter.
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. The index and all of its components are scaled so that any number over 50 indicates that more respondents report conditions are improving than report conditions are getting worse. In the third quarter of 2012, the MPI component tracking builder and developer perceptions of market-rate rental properties recorded a level of 69 and has been over 60 for five consecutive quarters—the longest sustained period of strength since the inception of the index in 2003. For-sale units had its highest reading since the fourth quarter of 2005, coming in at 44, while low-rent units dropped 15 points to 46.
Read more...Multifamily Production Index Shows Apartment and Condominium Market Remained Steady in 3Q - Multifamily News Headlines – Breaking News, Stories, Top Headlines :: MultifamilyBiz.com
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