According to the National Association of Home Builders (NAHB), the sentiment for building apartment buildings improved in the first quarter of 2021 as the rental housing market became more competitive.
“We continue to see strong demand for rental housing, especially in the suburbs,” said Justin MacDonald, chairman of the NAHB Multifamily Council. “But one Increase in building material prices and difficulties in obtaining permits remain a significant headwind for the industry. “
The NAHB Multifamily Production Index (MPI), which measures the sentiment of building owners and developers about the current conditions on the multi-family house market, rose by eight points compared to the previous quarter to 51. All three components of the MPI rose in the first quarter: The component for measuring Low rental units increased by four points to 46, the component for measuring standard rental units increased by six points to 54 and the component for measuring units for sale increased by 13 points to 52.
“The MPI reversed the trend and rose sharply in the second quarter of last year, a quarter before a similar trend reversal began in apartment buildings,” said NAHB economist Robert Dietz. “Since then, multi-family starts have reflected the MPI. The MPI rise in the first quarter of 2021 coincides with a similar rise in apartment buildings, starting at a seasonally adjusted annual rate of more than 450,000 units. Based on these latest figures, the NAHB now expects an increase in multi-family starts this year. ”
NAHB replaced the previous Multifamily Vacancy Index with the Multifamily Occupancy Index (MOI). The new index uses the same underlying data to measure the perception of the apartment building industry about the occupancy of existing housing. The Ministry of the Interior rose one point to 59, indicating increased occupancy in the first quarter.