Nahb measure indicates condo market growth
Published on: Mar 3, 2016
Transcripts - Nahb measure indicates condo market growth
NAHB Measure Indicates Condo Market GrowthBased in New Jersey, Jack H. Boyajian leads The Hutton Group asPresident. Jack H. Boyajians company specializes in convertingcooperatives into condominiums and serves as a real estatebrokerage with marketing support.Each quarter, the National Association of Home Builders (NAHB)releases its Multifamily Production Index (MPI), an economicindicator that describes the strength of the housing sector thatincludes apartments and condominiums. The MPI approaches themarket from the perspective of builders and developers, not buyers.To calculate the measure, NAHB takes into account construction ofmarket-rate rental units, low-rent units, and condominiums, whichindividuals may purchase.For the second quarter of 2012, the MPI level was 54, a three-pointincrease over the previous quarter. The result marks the eighthconsecutive quarter of growth. The MPI rental components appearedstrong, each coming in at a level over 60. The condo sector finishedat 41, the highest ranking since the fourth quarter of 2005.Industry experts say that credit access has kept developers fromkeeping up with multifamily rental unit demand. Nevertheless, therental market appears to be improving.