Confidence in the market increased for multifamily developers in the second quarter of 2025, according to the Multifamily Market Survey (MMS) released the NAHB. The MMS produces two separate indices. The Multifamily Production Index (MPI) was up two points year-over-year to 46. The Multifamily Occupancy Index (MOI) had a reading of 82, up one point year-over-year. Multifamily developer confidence experienced a slight increase compared to last year, most notably from the subsidized subcomponent. This is due in part to optimism surrounding the expansion of federal affordable housing resources flowing from the recent congressional reconciliation bill. However, high interest rates, rising construction costs, limited land availability and restrictive local regulations are still significant issues in certain parts of the country.