Multifamily Market Continues to be ‘Bright Spot’

The apartment and condo market showed big improvements in the first quarter, the National Association of Home Builders reports. NAHB’s latest Multifamily Production Index, which measures builder and developer sentiment over the multifamily markets, reached its highest reading since the third quarter of 2005. This marks the seventh-consecutive quarter the index has posted gains. "In spite of continuing difficulties in the capital markets, it appears that new construction is underway," says W. Dean Henry, chairman of NAHB's Multifamily Leadership Board. "This is certain to help satisfy some of the pent-up demand that has occurred over the past several years." Vacancies in multifamily housing remains at low levels, according to the index. "Multifamily construction continues to be a bright spot in the overall housing market," says David Crowe, NAHB’s chief economist. "However, as indicated by the [index], demand for apartments is now quite high, and production is still very low in a historic context and in the context of what we project is necessary to meet long-term demand." Source: National Association of Home Builders