"Multifamily developers share less confidence in the state of their market sector than they did a year ago, a National Association of Home Builders' (NAHB) Multifamily Market Survey found. High construction costs, elevated project borrowing and debt expense, stagnant rental growth and shaky consumer confidence are each culprits. The survey has two indices, one for multifamily production and the other for multifamily occupancy. The production index had a reading of 45, down three points year-over-year, and the occupancy index fell seven points to 74."
"Both the MPI and MOI in the fourth quarter indicated that the multifamily market is substantially stronger for garden and low-rise buildings than for mid- and high-rise, said NAHB Chief Economist Robert Dietz. This suggests that the 2025 trend of gains in multifamily market share for outlying metro and non-metro counties where garden and low-rise structures are more common is likely to continue in 2026. The lower readings for these taller multifamily properties also reflect relatively higher construction costs."
Multifamily developer confidence declined compared with a year earlier. High construction costs, elevated project borrowing and debt expense, stagnant rental growth, and shaky consumer confidence undermined sentiment. Two indices track multifamily production and occupancy; production read 45 (down three points year-over-year) and occupancy fell seven points to 74. Garden/low-rise properties recorded the strongest readings for both production and occupancy. Mid- and high-rise units showed the weakest confidence, with production at 31 and occupancy at 62. Higher costs for taller properties, including structured parking, reduce development feasibility in many markets and favor outlying metro and non-metro areas.
Read at www.housingwire.com
Unable to calculate read time
Collection
[
|
...
]