Multifamily sentiment a mixed bag due to recession fears – NAHB

Multifamily builders and developers reported generally stable market conditions in the second quarter of 2022, although it’s a mixed bag as to how the economic slowdown will affect the sector for the rest of the year.

The Multifamily Production Index, which measures builder confidence in the market for new multifamily housing, fell to 42 in the second quarter, down six points from the first quarter. According to the National Association of Home Builders (NAHB), the for-sale condo sector mainly dragged down the index. NAHB’s Multifamily Occupancy Index (MOI) posted an eight-point decline, down to 60 in Q2.

Despite the drop, overall rental demand remains solid as occupancy rates continue to improve, NAHB Multifamily Council chairman Sean Kelly said.