For the sixth consecutive quarter, the apartment and condo housing market continued to show signs of improvement.
The Multifamily Production Index, released by the National Association of Home Builders, measures builder and developer sentiment about current market conditions in the sector. The index reached 48.9 in the fourth quarter — out of a scale up to 100 — and reached its highest reading since the fourth quarter of 2005.
"The apartment and condo sector continues to be a bright spot in the housing market, with the overall index at its highest level in six years," says David Crowe, NAHB’s chief economist. "The rental components have been the driving force behind the increased index level. And although the for-sale component remains weaker, it is still double what it was just six quarters ago."
Still, the improvements are met with caution. Builders warn about the ongoing difficulty developers have faced in obtaining credit to finance development of new apartments as a major roadblock.
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