Confidence among multifamily developers continued to soften in the second quarter of 2026, according to the National Association of Home Builders’ Multifamily Market Survey (MMS). The Multifamily Production Index (MPI) fell to 43, down three points from a year ago, while the Multifamily Occupancy Index (MOI) declined eight points to 74.
The production index showed weaker sentiment across most market segments, with mid/high-rise construction posting the steepest decline. Despite the drop, apartment occupancy remained positive, as all occupancy measures stayed above the 50-point threshold that indicates favorable market conditions.
NAHB officials said developer confidence continues to be pressured by high interest rates, financing challenges, regulatory hurdles, lengthy approval processes, rising material costs and persistent skilled labor shortages. While the recently enacted 21st Century ROAD to Housing Act is expected to help address some of these issues, its benefits will take time to materialize.
Despite ongoing headwinds, rental housing demand remained supported by stronger job growth during the second quarter. Looking ahead, 71% of developers said market conditions were essentially unchanged from three months earlier, while 14% reported improvement and 15% said conditions had worsened.
For additional information on the MMS, visit nahb.org/mms.
For more information on the NAHB Multifamily program, please visit NAHB Multifamily.
ABOUT NAHB: The National Association of Home Builders is a Washington-based trade association representing more than 140,000 members involved in home building, remodeling, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing and other aspects of residential and light commercial construction.
