NAHB index shows multifamily developer confidence weakened in the third quarter

The National Association of Home Builders' Multifamily Production Index fell 5 points year over year to 41 in the third quarter, with all four components below 50, the group said on Nov. 5. The Multifamily Occupancy Index also fell 5 points, to 69, but remains well above 50, meaning owners still rate occupancy positively overall. NAHB Multifamily Council chairman Kip Lewis cited rising interest rates, construction costs that are high relative to rents and delays in project approvals and utility connections. Chief economist Robert Dietz said NAHB's 2027 forecast calls for a decline in multifamily starts.