The National Association of Home Builders (NAHB) recently released their Multifamily Production Index (MPI) results for the third quarter of 2013. Using three key elements, the MPI measures builder and developer confidence levels and outlook on current market conditions for apartments and condominiums.
Like other NAHB indices, any reading above 50 suggests a positive sentiment. In the case of MPI in the third quarter, the level was reported at 54. This is the seventh consecutive quarter to produce a positive reading. The three elements contributing to this new level are: the building of low-rent units, the building of market-rate rental units, and the building of for-sale units. Despite variations within these sections from quarter to quarter, the overall outlook remains positive.
W. Dean Henry, CEO of Legacy Partners Residential, a leading real estate investment management firm, agrees that the apartment industry is on the upswing. Henry says, “there are challenges still facing the industry … but the demand for apartments and condos is strong enough for developers to proceed in most markets.”
On top of the positive MPI sentiment, the apartment industry also boasts an improving Multifamily Vacancy Index result. For this index, a lower reading indicates lower vacancies, ultimately a good sign for the multifamily sector. In the third quarter, the level fell two points to 40. And, since 2010, the MVI has been steadily improving and stabilizing at healthy numbers.
Here at Arcadia Run, we’re always excited to see growth in the apartment and multifamily sector! Our newly built apartments are some of the best in the Manassas area and are an excellent example of positive production in the industry. Even better, our apartments define luxury: With features like tall ceilings, vinyl flooring, granite countertops, new carpet and extended windows, these new units could fill up quickly!
And, best of all, Arcadia Run goes above and beyond to provide more than what other apartment communities offer. Here, renters have access to amenities not typically available when renting an apartment. In the next year alone, we’ll be adding a clubhouse, a swimming pool, ball courts, and a jogging trail to our complex! Finally, an apartment community that can keep up with your active lifestyle!