The National Association of Home Builders (NAHB) recently released results from the Multifamily Market Survey (MMS) regarding the confidence in the market for new multifamily housing in the fourth quarter of 2023. The Multifamily Production Index (MPI) read at 41, below the break-even marker of 50, while the Multifamily Occupancy Index (MOI) was 77.

 

The MPI measured builder and developer sentiment about the multifamily market on a scale of 0 to 100. This statistic is a weighted average of four key market segments such as three in the built for rent market or the garden/low-rise, mid/high-rise, and subsidized and one for built-for-sale or condo market.

"Tight lending standards and the high cost of development loans continue to impede the financing of new multifamily projects," said Lance Swank, president and CEO of Sterling Group, Inc. in Mishawaka, Ind., and chairman of NAHB's Multifamily Council. "Developers in many parts of the country have also become cautious as they see a substantial number of new apartments being delivered and more that are ready to come online."

The measurement of garden/low-rise units rang in at 80 while mid/high-rise occupancy was weaker than the other market levels. Meanwhile, the component for subsidized units read at 88.