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NMHC: Construction Delays Persist Even with Slowdown in New Starts
The National Multifamily Housing Council (NMHC) said its September 2024 NMHC Quarterly Survey of Apartment Construction & Development Activity determined that the construction market is gradually improving, with a notable decline in reported delays. However, 52% of respondents still reported delays, while 86% saw deals repriced.
Even with fewer delays, though, there has been a significant decline in the number of construction projects being undertaken. Census Bureau data indicate a 37.1% decrease in multifamily starts between the second quarter of 2023 and Q2 2024. NMHC noted that if construction doesn’t pick up, existing affordability challenges will worsen in the coming years.
“The September findings make it clear that while we are witnessing slow improvements, rental housing providers continue to face real challenges when it comes to the construction of new communities,” said NMHC President Sharon Wilson Géno. “Economic uncertainty, high interest rates, rising insurance costs as well as high state and local taxes all continue to hamper badly needed building or even make projects infeasible.”
She continued, “Going forward, lawmakers should implement housing solutions that will work, including removing barriers to building and incentivizing needed construction, and reject regulatory proposals that will increase housing costs.”
- ◦Development
