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
Multifamily Housing | Dec 23, 2015
Student housing developer broadens its reach into multifamily
Aspen Heights Partners evaluates seven metros for its initial projects.
Multifamily Housing | Dec 17, 2015
Developers respond to demand from tenants for ‘smart’ design
A number of green prerogatives are having a beneficial impact on multifamily design and construction.
Multifamily Housing | Dec 14, 2015
Study finds increase in cost-burdened renters
Harvard’s Joint Center for Housing Studies released its biennial rental housing report, and it found that 21.3 million renters spend 30% or more of income towards rent.
Multifamily Housing | Dec 10, 2015
Developer of Jean Nouvel-designed New York City condo complex sued
One resident says living in the curvy, glass 100 Eleventh Avenue building is like being in a wind tunnel.
Multifamily Housing | Dec 7, 2015
Are long-term apartment rentals Airbnb’s next target?
Some developers are thinking about that possibility, says one West Coast real estate consultant.
Smart Buildings | Dec 7, 2015
AIA Baltimore holds rowhouse redesign competition
Teams competed to provide the best social and environmental design solutions for the city’s existing rowhouse stock.
Multifamily Housing | Nov 19, 2015
Herzog & de Meuron designs curving NYC luxury apartments
The 160 Leroy building will have 49 luxury homes, along with a white concrete façade covered with large windows.
High-rise Construction | Nov 17, 2015
CTBUH awards '2015 Best Tall Building Worldwide' to Bosco Verticale
Designed by Italian architect Stefano Boeri, the building design was applauded for its “extraordinary implementation of vegetation at such scale and height."
Multifamily Housing | Nov 17, 2015
A new luxury high rise reflects a resurgent condo market in Miami Beach
GLASS is one of several residential buildings in the works in that city’s hot South of Fifth neighborhood.
Multifamily Housing | Nov 5, 2015
Architects propose residential tower in Singapore with gardens on every floor
Imagine a high-rise with lush greenery on every floor—that’s the design Ingehoven Architects and A61 propose for Marina One, a series of residential towers in Singapore.
