According to the National Association of Home Builders, overall builder and developer confidence in the national multifamily market decreased for the first time in nearly a decade during the first three months of this year.
As reported by the group’s Multifamily Market Survey, which measures market condition sentiment, the industry’s confidence level dropped to its lowest point since the late summer of 2010.
The NAHB’s Multifamily Production Index uses a scale of zero to 100, with anything above 50 showing a positive outlook and anything below 50 indicating pessimism regarding current market conditions.
In the first quarter 2019 survey, the number, after a high of 61 in the spring of 2013, dropped to 40.
Despite those numbers, Robert Diaz, chief economist at the NAHB, noted that “permit growth is occurring, and production should level off moving forward.”
In a statement, Diaz added that the current national building market continues to be “dominated by rental production, with a 94 percent share at the start of 2019.”
By Garry Boulard
Get stories like these right to your inbox.