The Multifamily Production Index released recently by the National Association of Home Builders, reached 54 in the third quarter, seven points lower than a spike in the second quarter but the seventh consecutive reading above 50. The Index measures builder and developer sentiment about current conditions in the apartment and condominium market on a scale of 0 to 100.

There are still challenges facing the industry such as availability of labor and rising costs of some building materials, but the demand for apartments and condos is strong enough for developers to proceed in most markets.