NAHB reports multifamily confidence rising in Q3 2025. MPI climbs to 46, while MOI dips to 74. Developers remain optimistic in low-rise and subsidized sectors but cautious in high-density markets.
Confidence among multifamily builders and developers increased in the third quarter of 2025, according to the National Association of Home Builders’ Multifamily Market Survey. The Multifamily Production Index (MPI), which measures developer sentiment on current construction conditions, rose six points year-over-year to a reading of 46. While this marks an improvement from 2024, the figure remains below 50, indicating that more respondents continue to view conditions as poor rather than good.
The MPI is a weighted average of four components across rental and for-sale housing types. The garden or low-rise segment increased three points to 51, while the mid- and high-rise segment rose nine points to 37. The subsidized housing component increased nine points to 55, and the built-for-sale or condominium category improved six points to 35. These results show that sentiment has strengthened most in the lower-rise and subsidized sectors.
The Multifamily Occupancy Index (MOI), which measures industry sentiment about existing apartment occupancy levels, registered a reading of 74. Although this is above 50, suggesting generally strong occupancy, it marks the lowest level recorded in the past 11 quarters. The garden or low-rise occupancy measure dipped one point to 76, mid/high-rise held steady at 66, and subsidized units dropped five points to 81.
NAHB representatives noted that optimism remains divided across market types. Developers of low-rise and subsidized rental housing reported greater confidence, while those focused on high-rise or condominium projects remain cautious. Ongoing regulatory barriers, elevated construction costs, and financing challenges continue to affect the sector.
Robert Dietz, NAHB’s chief economist, said the findings reflect a shift toward multifamily construction growth in low-density areas and a slowdown in high-density metro markets. This trend aligns with broader data from NAHB’s Home Building Geography Index.
The association redesigned the Multifamily Market Survey in 2023 to improve clarity and align it with other NAHB sentiment reports. Because the survey’s seasonal adjustments are still under development, NAHB advises that MPI and MOI results should be compared year-over-year. In the latest quarter, 10% of respondents reported improving market conditions compared to three months prior, while 22% saw worsening conditions and 68% observed little change.