The market for multifamily units softened at the start of the year resulting in a slip for developers
The market for multifamily units softened at the start of the year resulting in a slip for developers.
The National Association of Home Builders’ Multifamily Production Index was down to 48 in the first quarter of 2017, the first time since the end of 2011 that the index has been below 50.
The index’s three components all decreased, construction of low-rent units, market-rate rental units and “for-sale" units.
“Volatility in the tax credit market is already having a detrimental effect on the production of affordable rental properties, most of which need to be financed with tax credits,” said Dan Markson, senior vice president of The NRP Group in San Antonio, Texas, and chairman of NAHB’s Multifamily Council.
Developers of market rate properties in many areas of the country are reasonably optimistic Markson said.
“The drop in the MPI in the first quarter is consistent with NAHB’s forecast of a general leveling off of multifamily production activity,” said NAHB Chief Economist Robert Dietz. “Going forward, we expect some modest declines, but multifamily production volume will still remain solid.”
The National Association of Home Builders’ Multifamily Production Index was down to 48 in the first quarter of 2017, the first time since the end of 2011 that the index has been below 50.
The index’s three components all decreased, construction of low-rent units, market-rate rental units and “for-sale" units.
“Volatility in the tax credit market is already having a detrimental effect on the production of affordable rental properties, most of which need to be financed with tax credits,” said Dan Markson, senior vice president of The NRP Group in San Antonio, Texas, and chairman of NAHB’s Multifamily Council.
Developers of market rate properties in many areas of the country are reasonably optimistic Markson said.
“The drop in the MPI in the first quarter is consistent with NAHB’s forecast of a general leveling off of multifamily production activity,” said NAHB Chief Economist Robert Dietz. “Going forward, we expect some modest declines, but multifamily production volume will still remain solid.”
