The NAHB's Multifamily Production Index increased to an index level of 51. The MPI showed a higher reading for builder and developer sentiment, increasing from 49 in the previous month.
The index's high reading indicates that builders and developers have improved their outlook toward building conditions for multifamily construction.
This follows an increased demand in the industry for multifamily rental properties, as an increased number of foreclosed home buyers are seeking rental properties to help them regain control of their financial condition.
"In spite of continuing difficulties in the capital markets, it appears that new construction is underway," reports W. Dean Henry, chairman of NAHB's Multifamily Leadership Board. "This is certain to help satisfy some of the pent up demand that has occurred over the past several years."
The NAHB's Multifamily Vacancy Index (MVI) also further exemplified the demand for rental properties. This index measures the multifamily housing industry's vacancy perception. This index declined to a level of 31, which indicates fewer vacancies.
Overall, the NAHB's monthly Multifamily Production and Vacancy Indexes are in line with the reported demand in the industry for increased rental properties.