Confidence in Current Production and Occupancy Conditions Declined in Q2 2024
According to a National Association of Home Builders survey, confidence in current production and occupancy conditions has declined in Q2 2024, compared to the same period in 2023 and Q1 2024. The Multifamily Production Index (MPI), which gauges sentiment about apartment and condo market conditions on a scale from 0 to 100, dropped to 44. This is a 12-point decrease from the previous year and 3 points lower than Q1 2024. Conversely, the Multifamily Occupancy Index (MOI) scored 81, down 8 points year-over-year but 2 points higher than Q1 2024, and up from 77 in Q4 2023. Survey responses showed that 12% felt market conditions improved, 63% saw no change, and 26% believed conditions worsened. All MPI components, including garden/low-rise, mid/high-rise, subsidized, and built-for-sale, saw declines, with mid/high-rise dropping the most from 36 to 29. However, mid/high-rise occupancy improved by 2 points to 76.
Source: https://www.orionprop.com/topfive/multifamily-developers-become-more-pessimistic-in-q2/
