Confidence in Multifamily at All-Time High
September 3, 2013
The apartment and condominium market continued to gain momentum in the second quarter with builders’ and developers’ confidence in the sector soaring to an all-time high, according to the National Association of Home Builders’ multifamily index. The index rose to its highest reading since 2003, which is the year the index began.
The index measures builder and developer sentiment in the apartment and condo market. The latest reading for the second quarter was 61. Any number above 50 indicates that more respondents report conditions are improving than getting worse.
"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, 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 index of builders’ perceptions on market-rate rental properties rose to 67 during the second quarter, marking the 11th consecutive quarter above 50. The index also saw increases in builder sentiment over for-sale units and low-rent units in the apartment and condo market.
"The apartment and condo sector continues to expand production," says 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."
Updated: August 16, 2018