Multifamily Housing Market Shows Improvements in First Quarter of 2012
The National Association of Home Builders (NAHB) recently released the Multifamily Production Index (MPI), an index that is a leading indicator for the multifamily market that measures builder and developer sentiment about the market’s current conditions. The latest MPI revealed an index level of 51, the highest since the third quarter of 2005. This quarter also marked the seventh consecutive quarter that the index has increased.
According to a press release from the NAHB, the MPI, as well as its components, are rated on a scale of 0 to 100, and any number over 50 “indicates that more respondents report conditions are improving than report conditions are getting worse.” The MPI from the first quarter of 2012 revealed the following:
- Builder and developer perceptions of market-rate rental properties recorded an all-time high of 69.
- Low-rent units dropped slightly to 53.
- For-sale units increased to 37, the highest reading for this component since the fourth quarter of 2005.
NAHB Chief Economist, David Crowe, said “Multifamily construction continues to be a bright spot in the overall housing market.”
This is great news for industry builders and developers, and we’d like to take a moment to remind everyone of Horner Millwork’s Commercial Sales Division. Our Commercial Sales Division specializes in serving the commercial and multifamily markets with doors and frames, hardware, interior doors, kitchen cabinets, and windows. Visit our website for more information on our Commercial Sales Division.