After hitting a rough patch in Q1 of 2020, confidence in the multifamily housing market continued to grow in Q2 and again in Q3. As a result, according to the National Association of Home Builders (NAHB) Multifamily Market Survey, the Multifamily Production Index (MPI) increased to a reading of 48, up from 37 in Q2 and 27 in Q1. At the same time, the Multifamily Vacancy Index (MVI) decreased 18 points to 44. The smaller the MVI number the fewer vacancies are being reported. The MPI and MVI readings in Q3 indicate that sentiment is rising in the multifamily housing market. The NAHB’s Home Building Geography Index also shows that multifamily construction is picking up specifically in less dense areas of the country.
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Multifamily Market Sentiment Improves in the Third Quarter