Confidence in the market for new multifamily housing showed mixed results year-over-year in the third quarter, according to results from the Multifamily Market Survey (MMS) by the National Association of Home Builders (NAHB). The MMS produces two separate indices. The Multifamily Production Index (MPI) had a reading of 40, up two points year-over-year, while the Multifamily Occupancy Index (MOI) had a reading of 75, down seven points year-over-year.
“Demand for rental apartments remains strong enough to support relatively high occupancy rates in existing projects,” said Tom Tomaszewski, president of The Annex Group and chairman of NAHB’s Multifamily Council. “However, construction costs, the cost and access to financing and the availability of land and regulations remain significant obstacles to new multifamily development.”