multi-family construction market showing buoyancy

Developers and builders are feeling bullish about current multi-family construction conditions, while anticipating the rest of 2018 with measured confidence.

That is one of the findings of a survey just released by the National Association of Home Builders, which additionally indicates that the industry is expecting to see an increase in market-rate, low-rent, and for-sale units in the next several months.

“The stability of multi-family builder confidence is consistent with NAHB’s view that the market has reached a healthy, sustainable level of production,” said Robert Dietz, the Chief Economist for the NAHB.

In a statement, Dietz added: “The overall strong economy is supporting demand and balancing supply-side issues many builders are facing, including shortages of labor and buildable lots, and the recent surge in lumber prices.”

The NAHB measures builder and developer sentiment using a Multifamily Production Index. That MPI is defined by the construction of low-rent apartment units nationally that are supported by tax credits; market-rate rental units; and condominiums.

The MPI for the most recent quarter came in at a positive 53 on a scale of 0 to 100, making it the second quarter in a roll that it has attained that number.

By Garry Boulard