Multifamily Construction Sentiment Improves in First Quarter of 2021

Confidence in the market for new multifamily housing increased in the first quarter of 2021, according to results from the Multifamily Market Survey (MMS) released by the National Association of Home Builders (NAHB). The MMS produces two separate indices. The Multifamily Production Index (MPI) increased eight points to 51 compared to the previous quarter. This is the first time the MPI has been over 50 in seven quarters. Meanwhile, the Multifamily Occupancy Index (MOI) increased one point to 59.

The MPI measures builder and developer sentiment about current conditions in the apartment and condo market on a scale of 0 to 100. The index and all of its components are scaled so that a number above 50 indicates that more respondents report conditions are improving than report conditions are getting worse.