1. NAHB Measure Indicates Condo Market Growth
Based in New Jersey, Jack H. Boyajian leads The Hutton Group as
President. Jack H. Boyajian's company specializes in converting
cooperatives into condominiums and serves as a real estate
brokerage with marketing support.
Each quarter, the National Association of Home Builders (NAHB)
releases its Multifamily Production Index (MPI), an economic
indicator that describes the strength of the housing sector that
includes apartments and condominiums. The MPI approaches the
market from the perspective of builders and developers, not buyers.
To calculate the measure, NAHB takes into account construction of
market-rate rental units, low-rent units, and condominiums, which
individuals may purchase.
For the second quarter of 2012, the MPI level was 54, a three-point
increase over the previous quarter. The result marks the eighth
consecutive quarter of growth. The MPI rental components appeared
strong, each coming in at a level over 60. The condo sector finished
at 41, the highest ranking since the fourth quarter of 2005.
Industry experts say that credit access has kept developers from
keeping up with multifamily rental unit demand. Nevertheless, the
rental market appears to be improving.