US Multifamily Developer Confidence in Q2 Declines Year-Over-Year
Multifamily Developer Confidence Falls in Second Quarter
On Thursday, the National Association of Home Builders (NAHB) released the results of its Q2 Multifamily Market Survey (MMS). According to the MMS, confidence in the market for new multifamily housing declined year-over-year during Q2.
The MMS produces two separate indices: The Multifamily Production Index (MPI) had a reading of 44, a decrease of 12 points year-over-year, while the Multifamily Occupancy Index (MOI) had a reading of 81, falling 8 points year-over-year.
Both the MPI and MOI are similar in nature; the index and all its components are scaled so that a number above 50 indicates more respondents report that conditions are good versus poor.
The NAHB points out that multifamily developers are less optimistic than they were at this time last year, given high interest rates and limited financing availability to develop multifamily properties. However, financial markets may become more stable later in the year, as recent weak economic data make it more likely that the Federal Reserve will cut interest rates.
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