Multifamily Housing Market Slowly Improving, Construction Activity Remains Weak
Data DIGest reported that economic activity continued to expand at a modest pace, according to 12 Federal Reserve Districts. The latest “Beige Book,” a compilation of informal soundings of businesses in each district reports, “Most Districts characterized commercial real estate and construction activity as weak or little changed, but improvements were noted in several areas.” The “Beige Book” also reported that credit for commercial development was still difficult to secure for some districts. Raw materials costs are on the rise still, with several districts pointing out copper and steel prices rising again.
The National Association of Home Builders (NAHB) reported, “The multifamily housing market continued to show improvement in the second quarter of 2011, as the Multifamily Production Index (MPI)…increased for the fourth consecutive quarter.” NAHB pointed out that the most positive sector is the multifamily rental construction. The outlook is positive for the next six months, as developers' expectations about multifamily construction were up for all sectors.
Source: Data DIGest