First-quarter proposal activity for multifamily housing added to prior quarter gains, reaching a near-record Net Plus/Minus Index (NPMI) of 71%. Multifamily topped the four other housing submarkets, though all performed well.
The first three months of the year saw housing lead all 12 major markets in the PSMJ Resources Quarterly Market Forecast survey of architecture, engineering, and construction (AEC) firms.
PSMJ’s NPMI expresses the difference between the percentage of firms reporting an increase in proposal activity and those reporting a decrease. The QMF has proven to be a solid predictor of market health for the industry since its inception in 2003. A consistent group of over 300 AEC firm leaders participate regularly, with 183 contributing to the most recent survey.
Up 13 percentage points from the final quarter of 2020, multifamily’s NPMI of 71% tied its third-highest score since PSMJ added submarkets to its QMF survey in 2006. In addition to the record-high 76% in the 1st Quarter of 2018 and 72% in the 1st Quarter of 2012, Multifamily hit 71% in the 1st Quarter of 2015.
The 2021 performance marked a remarkable rebound for Multifamily, which dipped to -2% in the 1st Quarter of 2020, its first time in negative figures since 2010. In fact, before the COVID-driven drop a year ago, Multifamily’s NPMI had not fallen below 40% since the 3rd Quarter of 2011.
PSMJ Senior Principal David Burstein, PE, AECPM, noted that the strong performance of Multifamily and the entire Housing sector illustrates the industry’s overall economic health, as Housing growth often leads to activity in commercial, institutional and industrial markets as well. Should Congress pass an infrastructure stimulus bill, adds Burstein, the market could see even more historic growth.
Among respondents that work in the Multifamily sector, only 1% said that they saw a decrease in proposal opportunities in the 1st Quarter, compared with 72% that saw a noticeable increase. The remainder said that activity was about the same as the prior quarter.
The Assisted/Independent Senior Living submarket was another highflyer in the 1st Quarter, climbing 32 NPMI percentage points to 59%, tied for 12th -best among all submarkets. Condominiums bounced another 15 NPMI points to 30%, its best showing in three years.
The two other Housing markets measured in the PSMJ survey remain in rarefied air. The Housing Subdivision market recorded an NPMI of 68%, eclipsing its record-tying 4th -Quarter 2020 performance by 17 percentage points. Single-Family Homes dipped 8 NPMI percentage points to 51% – one of only 3 submarkets to see a decline – but that was still good enough for its second-best NPMI performance in the history of the QMF survey.
Related Stories
| Mar 14, 2013
25 cities with the most Energy Star certified buildings
Los Angeles, Washington, D.C., and Chicago top EPA's list of the U.S. cities with the greatest number of Energy Star certified buildings in 2012.
Building Enclosure Systems | Mar 13, 2013
5 novel architectural applications for metal mesh screen systems
From folding façades to colorful LED displays, these fantastical projects show off the architectural possibilities of wire mesh and perforated metal panel technology.
| Mar 6, 2013
Dual towers designed by SHoP create new affordable housing in NYC
With the construction of Hunters Point South, New York City will get its first large new housing development for middle-class families in more than 30 years. Related Companies is partnering with the nonprofit Phipps Houses in the project, designed by SHoP Architects with Ismael Leyva Architects.
| Mar 6, 2013
German demonstration building features algae-powered façade
Exterior of carbon-neutral demonstration building consists of hollow glass panels containing micro-algae "farms."
| Mar 4, 2013
Gehry unveils design for Santa Monica hotel-condo tower
If all goes as planned, Frank Gehry will design the first building in his hometown in some 25 years.
| Mar 3, 2013
Hines acquires Archstone's interest in $700 million CityCenterDC project
The Washington D.C. office of Hines, the international real estate firm, announced the acquisition of the ownership interest of their partner, Archstone, in the mixed-use CityCenterDC project that is currently under construction in downtown Washington, D.C.
| Mar 1, 2013
China mega developer enters U.S. market
China Vanke Co., Ltd., is making its debut in the U.S. property market with a joint venture high-rise condominium project at 201 Folsom St. in San Francisco, according to CoStar's Randyl Drummer.
| Feb 28, 2013
Novel multifamily solutions to be presented at New York Modular Construction Summit
The New York Modular Construction Summit will be co-hosted by the Modular Building Institute and Pratt Institute School of Architecture on May 16, 2013, in Brooklyn, N.Y.
| Feb 28, 2013
Lend Lease builds world's tallest timber apartment building
Construction giant Lend Lease recently put the finishing touches on Forté, a 10-story apartment complex in Melbourne, Australia's Victoria Harbour that was built entirely with cross laminated timber (CTL) technology.
| Feb 27, 2013
Bronx residents get LEED Platinum public housing complex, rooftop farm
The New York City Housing Authority has opened Arbor House, a 124-unit LEED Platinum complex in the Morrisania neighborhood of the Bronx.
