Washington, D.C.—The Multifamily Market Survey, released by the National Association of Home Builders, produced mixed results for the first quarter of 2026.
The survey produces two separate indexes. The Multifamily Production Index had a reading of 44, unchanged from a year ago. The Multifamily Occupancy Index had a reading of 69, down 13 points from a year ago.
The MPI measures builder and developer sentiment about current production conditions in the apartment and condo market. It uses a scale of 0 to 100. The index and all its components are scaled so that a number below 50 means more respondents report poor conditions than good conditions.
The MPI is a weighted average of four key market segments. Three are in the built-for-rent market: garden/low-rise, mid/high-rise and subsidized. The fourth is in the built-for-sale, or condominium, market.
The component measuring garden/low-rise units fell six points to 48. The component measuring mid/high-rise units increased seven points to 35. The component measuring built-for-sale units inched down one point to 37. The component measuring subsidized units rose six points to 56. It was the only component above the break-even point of 50.
Occupancy remains positive
The MOI measures the multifamily housing industry’s view of occupancies in existing apartments. It also uses a scale of 0 to 100. The index and all its components are scaled so that a number above 50 means more respondents report good occupancy than poor occupancy. The reading of 69 shows existing apartment owners remain positive about occupancy overall.
The MOI is a weighted average of three built-for-rent market segments: garden/low-rise, mid/high-rise and subsidized. All three components declined from a year ago. However, all three remained above the break-even point of 50.
The component measuring garden/low-rise units fell 11 points to 71. The component measuring mid/high-rise units dropped 17 points to 59. The component measuring subsidized units decreased nine points to 80.
“Multifamily developer sentiment is roughly where it was at this time last year, although the combination of regulatory hurdles, interest rates, insurance costs and volatility in material prices is threatening the viability of some projects,” said Kip Lewis, director of construction management at OCCH in Columbus, Ohio and chairman of NAHB’s Multifamily Council. “Also, in some markets, developers are reporting that it has become more difficult to obtain permits for unsubsidized projects.”
Most developers report stable conditions
NAHB redesigned the MMS in 2023 to produce results that are easier to interpret. The format also aligns with other NAHB industry sentiment surveys. Until there is enough data to seasonally adjust the indexes, changes in the MPI and MOI should only be evaluated on a year-over-year basis.
“The MPI and MOI continue to show that the market for garden and low-rise apartments typical of outlying areas is stronger than the market for mid- and high-rise apartments,” said NAHB Chief Economist Robert Dietz. “The gap is narrowing year over year for new multifamily construction, however, while widening for the occupancy of existing apartments. NAHB is projecting that multifamily starts will increase slightly in 2026, but current production rates are unlikely to be sustained through 2027.”
The survey also includes a separate question that asks multifamily developers to compare current market conditions with conditions three months earlier. In the first quarter of 2026, 21% of respondents said the current market is better. Another 19% said it is worse. However, 60% of developers said the market is about the same as it was three months ago.