MULTIFAMILY BUILDERS LESS PESSIMISTIC

This has to be the headline of the day.

MULTIFAMILY BUILDERS LESS PESSIMISTIC
Survey Indicates Downward Trends in Occupancy and Supply Slowing

Washington, June 10 -The multifamily market showed signs of moving back toward stability in the first quarter of 2010, according to the latest NAHB’s Multifamily Market Index (MMI).  The current production index for market-rent apartments jumped to 30.6, 14 points higher than a year earlier, while future demand expectations for Class A apartments rose to 49.6 from 34 and for Class B to 53.1 from 43.9.  For lower-rent units and for-sale condominiums, the current production indexes rose to 38.2 and 25.0, respectively, more than 10 points higher than in the first quarter of 2009.

The MMI measures multifamily builder sentiment based on production and occupancy at the current time–using a scale of stronger, the same, or weaker compared to the previous quarter–as well as builders’ expectations for conditions over the next six months. An index number greater than 50 indicates that the number of builders who view conditions as getting stronger outnumber the number who view conditions as becoming weaker. The values are not seasonally adjusted…

Press Release via email from NAHB

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