Confidence in new multifamily housing increased in the third quarter, according to results from the National Association of Home Builders' Multifamily Market Survey. The survey produces two separate indices: the Multifamily Production Index/MPI and the Multifamily Vacancy Index/MVI.
Historically, the MPI and MVI have performed well as leading indicators of US Census figures for multifamily starts and vacancy rates, providing information on likely movement in the Census figures one to three quarters in advance. However, the pandemic and subsequent economic downturn have added obstacles at least for the near future, says Barry Kahn, president of Hettig-Kahn Holdings in Houston and chairman of NAHB's Multifamily Council.
"Sentiment regarding the multifamily housing market has risen from recent lows, but there are persistent headwinds and ongoing uncertainty," he says. "Nevertheless, lenders see multifamily performing better than most other forms of commercial real estate."
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
