“Multifamily developer confidence is currently at an all-time high according to our survey results, and we expect to see that continue for the foreseeable future,” says W. Dean Henry, CEO of Legacy Partners Residential in Foster City, Calif., and chairman of NAHB’s Multifamily Leadership Board. “Much of the consumer demand that we are now seeing is coming from a large generation of young people who are able to find jobs and establish their own households as the economy continues to improve.”
The Multifamily Vacancy Index (MVI), which measures the multifamily housing industry’s perception of vacancies, rose four points to 42. With the MVI, lower numbers indicate fewer vacancies. After peaking at 70 in the second quarter of 2009, the MVI improved consistently through 2010 and has been at a fairly moderate level since 2011.
Historically, the MPI and MVI have performed well as leading indicators of U.S. Census figures for multifamily starts and vacancy rates, providing information on likely movement in the Census figures one to three quarters in advance.
“The apartment and condo sector continues to expand production,” said NAHB Chief Economist David Crowe. “This increased level of activity is needed to meet current demand and to compensate for a serious lack of new units developed during the housing downturn.”
For data tables on the MPI and MVI, click here.