Only 80 housing markets qualified for the First American/National Association of Home Builders (NAHB) Improving Markets Index (IMI) in June, down from 100 the prior month.
Of those, 28 were new to the list, with 48 from the previous month dropping off it. The IMI only counts markets as improving when they have demonstrated positive trends in home prices, employment and housing permit issuance. Many of the 48 were removed from the list because of a dip in housing prices.
Those which qualified in June by showing improvement for a minimum of six consecutive months included the District of Columbia and markets throughout 30 states. David Crowe, chief economist of the NAHB, indicated that volatility in the housing market is a result of how much impact local trends are having. He also stated that the number of new markets on the list this month is a strong positive sign despite the drop in total improving markets.
Home price trends may have mixed significance for the multifamily sector. Decreased inventory in the single-family market is likely to bring stability and may lead to an increase in homeownership, which has fallen far in recent years. Rental property management firms and other stakeholders may benefit from stronger overall occupancy rates, however. Higher purchase prices also make renting more competitive in comparison.