Condo, apartment building activity highest since 2005

The Multifamily Production Index (MPI), released by the National Association of Home Builders, improved for the eighth consecutive quarter with an index level of 54. It is the highest reading since the second quarter of 2005.

The MPI, which measures builder and developer sentiment about current conditions in the apartment and condominium market on a scale of 0 to 100, rose from 51 in the first quarter to 54 in the second quarter.

“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.”