Multifamily market gains steam

The multifamily market strengthened during the second quarter.

The National Association of Home Builders recently released a report that showed the multifamily market improved during the second quarter for commercial property managers and developers.

NAHB's Multifamily Production Index rose for the eighth straight time during the second quarter to a level of 54. This improvement brought the index to its highest point since 2005, which was also three points higher than the first quarter's figure of 51.

"The apartment and condo housing sector is continuing on a path of steady recovery as new construction has increased to try to keep up with current consumer demand," said W. Dean Henry, chairman of NAHB’s multifamily leadership board. "However, credit continues to be an issue for many developers around the country, making it difficult to keep pace with this demand."

While any figure above fifty signaled the aforementioned index was positive, the association's Multifamily Vacancy Index works oppositely. For the second quarter, the vacancy level rose to 35, but was still well within positive territory. The level was far below the peak in 2009, when it was 70.

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