Builder confidence in the multifamily housing market dropped two points in the second quarter of 2018, falling to a level of 52 on the Multifamily Production Index (MPI), according to the National Association of Home Builders (NAHB).
Out of 100 levels, confidence levels above 50 are considered indicative of positive market conditions.
“It is still above 50, reflecting a solid number of multifamily starts so far this year,” NAHB Chief Economist Robert Dietz stated of the confidence level. “In addition to regulatory costs, developers still need to monitor the impact of tariffs and the threat of further trade restrictions on building materials prices, especially lumber.”
NAHB Multifamily Council Chairman Steve Lawson said demand remains strong, but that headwinds have impacted further development.
“Some developers have had difficulty getting projects of the ground due to regulatory burdens and neighborhood opposition in certain parts of the country,” Lawson said in a statement.
