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Sep
07

Apartment and Condominium Market Improves in Second Quarter

By on Sep 07

Multifamily Production Index improvingThe latest Multifamily Production Index (MPI) from the

National Association of Home Builders showed improvement for the eight consecutive quarter with an index level of 54. This is the highest score since the second quarter of 2005.

The MPI measures builder and developer sentiment about current conditions in the condominium and apartment market on a scale of 0 to 100. This quarter’s score of 54 is a three point gain from the score of 51 in the first quarter of 2012.

The MPI provides a comprehensive measure of three key elements of the multifamily housing market: market-rate rental units, for sale units and construction of low-rent units. According to the scale, any number above 50 indicates that more respondents report conditions as improving than as declining. Market rate rental units had a score of 63 with for sale units at 41 and low-rent units at an all-time high of 61.

The Multifamily Vacancy Index (MVI), which measure the multifamily housing industry’s perceptions of vacancies, increased five points in the second quarter to a 36. Lower MVI numbers indicate fewer vacancies.

Historically, the MPI and MVI have been good indicators of U.S. Census figures for multifamily starts and vacancy rates providing information on likely movement in those figures one to three quarters in advance.

Categories : General Info, News

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