Pandemic Concerns Weaken Multifamily Builder and Developer Confidence
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) released today by NAHB. The survey was conducted during the first part of April, when many of the effects of the pandemic had become apparent. The MMS produces two separate indices:
- 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.
- Multifamily Vacancy Index (MVI) rose 19 points to 59, with higher numbers indicating more vacancies.
- low-rent units — apartments that are supported by low-income tax credits or other government subsidy programs;
- market-rate rental units — apartments that are built to be rented at the price the market will hold; and
- for-sale units — condominiums.
- Low-rent units fell 21 points to 32.
- Market-rate rental units dropped 21 points to 29.
- For-sale units decreased 24 points to 22.