Multifamily construction sentiment has reached its highest mark in seven quarters in Q1 2021, according to results from the Multifamily Market Survey released by the National Association of Home Builders.

The Multifamily Production Index, which measures builder and developer sentiment about current conditions in the apartment and condo market on a scale of 0 to 100, rose eight points from Q4 2020 to 51 in Q1. NAHB says this is the first time the MPI has been over 50 in seven quarters. Meanwhile, the Multifamily Occupancy Index increased one point to 59. A number above 50 indicates that more respondents report conditions are improving than report conditions are getting worse.

The MPI is a weighted average of three key components of multifamily housing: construction of apartments that are supported by low-income tax credits or other government subsidy programs, market-rate rental units and for-sale units—condominiums. The component measuring low-rent units rose four points to 46 in Q1, while the component measuring market-rate rental units increased six points to 54. Finally, the component measuring for-sale units jumped 13 points to 52.