In the third quarter of 2015, the NAHB’s Multifamily Production Index (MPI) increased one point to a level of 56. This marks the 15th consecutive quarter with a reading of 50 or above, which indicates that more respondents report conditions are improving than report conditions are becoming worse.
The MPI is fairly consistent with the strong performance of multifamily starts, which have recovered from the downturn (see graph above). The forecast is for continued strong production at about this level for the next two years.
Also in the third quarter, the Multifamily Vacancy Index (MVI), which measures the multifamily housing industry’s perception of vacancies, increased five points to 39. A higher number indicates more vacancies. After peaking at 70 in the second quarter of 2009, the MVI improved consistently through 2010 and has been fairly stable since 2011.
For more information, including the full history and derivation of each of the components of the MPI and MVI, see the web page for NAHB’s quarterly Multifamily Market Survey.