Where any number over 50 indicates more builders see the market as improving rather than getting worse, the National Association of Home Builders (NAHB) Multifamily Production Index (MPI) dropped two points to 52, while still marking the fifth consecutive quarter with a reading over 50. The MPI measures construction of low-rent units, market-rate rental units and for sale units, usually condos. “The apartment sector overall has largely recovered since the downturn, so we have now reached a level of development that is close to equilibrium and can continue at this pace,” said W. Dean Henry, chairman of NAHB’s Multifamily Leadership Board. “With that said, there are still certain markets around the country that have room to grow.” Meanwhile, the Multifamily Vacancy Index (MVI), which measures the multifamily housing industry’s estimation of vacancies, rose seven points to 38. The lower the MVI number, the fewer the vacancies, MHProNews has learned. Since peaking at 70 in Q2 of 2009, the MVI improved consistently through 2010 and has been at a fairly moderate level throughout 2011 and 2012.
