The Multifamily Market Survey (MMS) is based on a quarterly survey of NAHB multifamily builders and property managers. The survey is designed to monitor conditions for multifamily production (starts) and multifamily rental occupancy in the current versus preceding quarter as well as in the next six months.
Confidence in the market for new multifamily housing weakened significantly in the first quarter of 2020, according to results from the Multifamily Market Survey (MMS). The MMS produces two separate indices. The Multifamily Production Index (MPI) fell 22 points to 27 compared to the previous quarter, which is the lowest reading since the fourth quarter of 2009. Meanwhile, the Multifamily Vacancy Index (MVI) rose 19 points to 59, with higher numbers indicating more vacancies.
- Multifamily Production Index (Excel) (PDF)
- Multifamily Vacancy Index (Excel) (PDF)
- Derivation of multifamily production index (Table & Chart)
- Derivation of multifamily vacancy index (Table & Chart)
- Full Report
Each quarter, a panel of multifamily developers rate production of new market-rate and low-rent apartments, as well as production of new multifamily condominiums, and on a scale of “stronger,” “same” or “weaker” compared to the previous quarter. The same panel rates occupancy in Class A, Class B and Class C rental apartments on a similar scale (“higher,” “same,” or “lower”) relative to the previous quarter. Their answers are used to produce two summary indices: the Multifamily Production Index (MPI) and the Multifamily Vacancy Index (MVI).
The MPI is a weighted average of current production indexes for low-rent, market-rent and for-sale units, and can range from 0 to 100. Any number above 50 indicates more builders report stronger rather than weaker conditions.
The MVI is 100 minus a weighted average of current occupancy indices for class A, B, and C units, and can also range from 0 to 100. Any number above 50 indicates more property managers report negative conditions (more vacant apartments).
The weights for the summary indexes were chosen based on correlations between the various component indices and measures of multifamily production and vacancy published by the U.S. Census Bureau.