The MPI, which tracks builder and developer sentiment across four key market segments, revealed a mixed landscape. Garden and low-rise projects climbed three points to 51, marking the only segment in positive territory.
“We are seeing a degree of bifurcation in the multifamily market, as developers of low-rise market-rate and subsidized rental properties express increased optimism, while developers of mid- and high-rise properties and condominiums remain less confident,” said Debra Guerrero, senior vice president of strategic partnerships and government affairs at The NRP Group and chairman of NAHB’s Multifamily Council.
She added, “Significant challenges such as the current regulatory environment, rising construction costs and difficulties in securing project financing continue to affect the multifamily sector as a whole.”
Mid- and high-rise units saw a sharper nine-point gain to 37, but sentiment remained negative. The subsidized segment jumped nine points to 55, while the built-for-sale (condominium) market increased six points to 35.
“The MPI and MOI are giving us a mixed picture of the multifamily market, with strength in some market segments, but weakness concentrated in the mid-to-high-rise developments that tend to be common in high-density metro areas,” said NAHB chief economist Robert Dietz.