• Rentals Slide, Outlook Still Optimistic
  
  Amid concerns of a slowing overall economy and continuing trouble in other sectors of the housing market, builder confidence in the rental apartment market dipped in the second quarter of 2008, but the outlook remains positive.
  
  When asked about expected conditions over the next six months, multifamily developers were more optimistic for market-rate rentals than for affordable apartment rentals.
  
  The recent news that the President had signed into law long-awaited housing stimulus legislation may bolster builder confidence further.

“The housing stimulus legislation that the President signed into law will go along way to help the housing market and the economy by stimulating demand and getting the capital markets working properly again,” said NAHB chief economist, David Seiders. “That will be good for the rental apartment market as well as for the for-sale housing market.”

View the full press release for more data, and an overview of the index. 

• Confidance Wanes in Condo Market

Builder confidence in the market for condominiums continued to fall in the second quarter of 2008, according to the Multifamily Condo Market Index (MCMI), released by the National Association of Home Builders (NAHB). The latest decline pushed two of the three components of the MCMI to their lowest levels since NAHB created the index in 2002.

“Like the market for single-family homes, the housing slump and the recent turmoil in the financial markets are also distressing the condo market,” said NAHB Chief Economist David Seiders. “The hope now is that the housing stimulus bill signed into law last week by the President will support a much-needed turnaround in all sectors of the housing market, including condos.”

The milestone legislation is expected to bring a substantial boost to the housing industry in the form of a temporary tax credit for first-time home and condo buyers, as well as much-needed measures that will improve mortgage liquidity, foster refinancing of troubled loans and expand the supply of affordable rental housing. The newly enacted legislation will offer first-time home and condo buyers a tax credit of up to $7,500 for purchases made from April 9, 2008 to July 1, 2009.

View the full press release for more data, and an overview of the index.