Good news released late last month by the National Association of Home Builders (NAHB) improves the outlook on multifamily housing. The NAHB published their Multifamily Production Index (MPI) for the second quarter of 2013. The index shows a nine-point increase to 61, which is the highest reading since the inception of the index in 2003.
Multifamily housing refers to apartments and condominiums. The index measures builder and developer responses about current market conditions – rating on a scale from 0 to 100. Any reading above 50 shows that more professionals report conditions are improving rather than getting worse. The index is measured using three key elements: construction of low-rent units, “for-sale” units, and market-rate rental units.
In the second quarter, all components saw a welcomed increase. Market-rate rental properties rose six points to 67. This is the 11th straight quarter where this number was above 50. Low-rent units also increased five points to 60 and for-sale units saw an incredible 16-point jump.
W. Dean Henry of Legacy Partners Residential and chairman of NAHB’s Multifamily Leadership Board says, “Multifamily developer confidence is currently at an all-time high … we expect to see that continue for the foreseeable future. Much of the consumer demand that we are now seeing is coming from a large generation of young people who are able to find jobs and establish their own households as the economy continues to improve.”
With every aspect of the MPI improving, we’ll see a much-needed boost in the apartment industry. The Chief Economist of NAHB, David Crowe, notes that the expanding production is necessary to keep up with the demand and to catch up with new unit production that was lost during the housing downturn. We’re definitely moving in the right direction!
Arcadia Run is a prime example of positive apartment production. Our apartments are the nicest in the Manassas area and offer the perfect living alternative for those who don’t want to buy a house. Not to mention, our spaces provide the best features available while still being affordable. With more people choosing to rent, the demand for Arcadia Run apartments will grow, and their availability will soon be limited – so don’t hesitate! As the economy and apartment industry improve, there is no better time to rent with Arcadia Run.