The multifamily housing market, which includes apartments and condominiums, posted gains in the second quarter of 2017, according to the latest National Association of Home Builders (NAHB) Multifamily Production Index (MPI). The Index rose eight points to 56. An above-50 reading indicates more builders have a positive outlook than a negative one.
“A return to a positive trend in the MPI is consistent with positive builder sentiment in other segments of the housing industry,” said Robert Dietz, chief economist of the NAHB, in a statement. “Multifamily demand remains solid, even as apartment construction comes off cycle highs as the multifamily market seeks a balance between supply and demand.”
The Index includes three measures: construction of low-rent units, market-rate units and for sale units (i.e., condos). All three rose in the second quarter, with construction of low-rent and market-rate units up five points to 53 and 60, respectively, and construction of for sale units up 14 points to 57—the highest in the Index since 2005.
“Multifamily developers continue to see strong demand in many parts of the country,” said Steven E. Lawson, and vice chairman of NAHB’s Multifamily Council, in a statement. “However, developers need to be careful to manage costs as prices of land, labor and some materials continue to rise.”
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