Condo, apartment building continues to improve

The Multifamily Production Index (MPI), a leading indicator for the multifamily market released by the National Association of Home Builders (NAHB), showed steady improvement in the apartment and condominium housing market for a sixth consecutive quarter.

The MPI, which measures builder and developer sentiment about current conditions in the multifamily market on a scale of 0 to 100, increased from 47.3 in the third quarter to 48.9 in the fourth quarter-the highest reading since the fourth quarter of 2005.

“The rental components have been the driving force behind the increased index level,” said David Crowe, NAHB’s chief economist. “And although the for-sale component remains weaker, it is still double what it was just six quarters ago.”