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NMHC Survey Finds Construction Delays and Higher Costs Persist
The National Multifamily Housing Council’s latest Construction Survey found that 90% of respondents reported construction delays, with 78% of the group reporting delays in permitting and 86% experiencing start delays. Notably, an increasing share of respondents report delayed starts due to a lack of availability in construction financing—up from 7% of respondents in March, to 15% in June and 31% in this survey.
With construction delays a constant, costs continue to rise with 76% of respondents experiencing price increases in projects, at an average rate of 9%. A bright spot is that lumber prices appear to be decreasing: on average, they declined for a second straight quarter, dropping 2% over the past three months.
“The nation is facing extraordinary housing affordability challenges in the wake of the pandemic,” said NMHC president Doug Bibby. “Costs are up across the board and projects are taking longer and longer to complete. Lawmakers at all levels of government should look at every policy option available to them to reform antiquated zoning, streamline the development process and incentivize the building of new housing of all types and at all prices points.”
- ◦Development
