“Demand for rental housing remains strong, but headwinds in parts of the country are slowing down production of new apartments,” said Justin MacDonald, chairman of the NAHB’s Multi-Family Council. “The moratorium on evictions makes it difficult to obtain funding in places where rental assistance is insufficient to offset the moratorium. Elsewhere, local governments introducing new rules and moving to virtual meetings are taking longer to obtain permits. ”
More details: What’s Happening to US Homebuilding?
The Multi-Family Employment Index (MOI), which measures a multi-family home’s perception of existing apartment occupancy, rose six points to 70. This is the highest since the start of the study, according to the NAHB.
“MPI declined slightly in the second quarter, while apartment building production continued to rise, but MPI is characterized by a change one to three quarters before launch,” said NAHB economist Robert Dietz. “However, MPI remains as strong as it has at any point in 2020, and NAHB expects more apartments to be commissioned in 2021 than in 2019 or 2020.”