【World Property Journal】U.S. Multifamily Construction Sentiment Improves in 2021

The MMS produces two separate indices. The Multifamily Production Index (MPI) increased eight points to 51 compared to the previous quarter. This is the first time the MPI has been over 50 in seven quarters. Meanwhile, the Multifamily Occupancy Index (MOI) increased one point to 59.

The MPI measures builder and developer sentiment about current conditions in the apartment and condo market on a scale of 0 to 100. The index and all of its components are scaled so that a number above 50 indicates that more respondents report conditions are improving than report conditions are getting worse.

The MPI is a weighted average of three key elements of the multifamily housing market: construction of low-rent units-apartments that are supported by low-income tax credits or other government subsidy programs; market-rate rental units-apartments that are built to be rented at the price the market will hold; and for-sale units-condominiums. All three components increased in the first quarter: the component measuring low-rent units rose four points to 46, the component measuring market rate rental units increased six points to 54 and the component measuring for-sale units jumped 13 points to 52.

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