According to the National Association of Home Builders (NAHB) Multifamily Market Survey (MMS), as a result of the ongoing COVID-19 pandemic, multifamily builders and developers confidence in their markets softened substantially in the first quarter of 2020. The MMS consists of two separate indices: The Multifamily Production Index (MPI) which fell 22 points, to a reading of 21, its lowest reading since the fourth quarter of 2009. And the Multifamily Vacancy Index (MVI) which rose 19 points to a reading of 59, with the higher number indicating a rise in vacancies and at its highest level since the fourth quarter of 2009. For the MPI any reading below 50 indicates that builder view the market as concerning. For the MPV any reading above 50 indicates a large number of vacant units.
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