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 | Aug 4, 2022
Faculty housing: A powerful recruitment tool for universities
Recruitment is a growing issue for employers located in areas with a diminishing inventory of affordable housing.
Multifamily Housing | Aug 3, 2022
7 tips for designing fitness studios in multifamily housing developments
Cortland’s Karl Smith, aka “Dr Fitness,” offers advice on how to design and operate new and renovated gyms in apartment communities.
Building Materials | Aug 3, 2022
Shawmut CEO Les Hiscoe on coping with a shaky supply chain in construction
BD+C's John Caulfield interviews Les Hiscoe, CEO of Shawmut Design and Construction, about how his firm keeps projects on schedule and budget in the face of shortages, delays, and price volatility.
Codes and Standards | Aug 3, 2022
Some climate models underestimate risk of future floods
Commonly used climate models may be significantly underestimating the risk of floods this century, according to a new study by Yale researchers.
| Aug 3, 2022
Designing learning environments to support the future of equitable health care
While the shortage of rural health care practitioners was a concern before the COVID-19 pandemic, the public health crisis has highlighted the importance of health equity in the United States and the desperate need for practitioners help meet the needs of patients in vulnerable rural communities.
Reconstruction & Renovation | Aug 3, 2022
Chicago proposes three options for Soldier Field renovation including domed stadium
The City of Chicago recently announced design concepts for renovations to Soldier Field, the home of the NFL’s Chicago Bears.
Codes and Standards | Aug 2, 2022
New tools help LEED projects reach health goals
The U.S. Green Building Council now offers tools to support the LEED Integrative Process for Health Promotion (IPHP) pilot credit.
Market Data | Aug 2, 2022
Nonresidential construction spending falls 0.5% in June, says ABC
National nonresidential construction spending was down by 0.5% in June, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau.
K-12 Schools | Aug 1, 2022
Achieving a net-zero K-12 facility is a team effort
Designing a net-zero energy building is always a challenge, but renovating an existing school and applying for grants to make the project happen is another challenge entirely.
Healthcare Facilities | Aug 1, 2022
New Phoenix VA outpatient clinic is one of the largest veteran care facilities in the U.S.
The new Phoenix 32nd Street VA Clinic, spanning roughly 275,000 sf over 15 acres, is one of the largest veteran care facilities in the U.S.