Apartment Builders, Developers are Optimistic Long-Term Despite Rising Costs

Apartment builders and developers maintain a positive outlook on longer-term multifamily construction conditions despite expecting that costs will continue to increase. That’s the topline conclusion to be drawn from the National Multifamily Housing Council’s June 2026 NMHC Quarterly Survey of Apartment Construction & Development Activity

Although respondents were cautious about the near term, with 77% expecting no change in multifamily construction market conditions over the next three months, 46% expect conditions to improve over the next six to 12 months compared to just 14% who expect conditions to decline.

Respondents were similarly optimistic about financing availability further out, with 51% expecting equity to become more available and 28% expecting debt financing to become more available over the next six to 12 months. Construction delays continued easing, with 20% of respondents reporting fewer delays than three months ago.

“Inflation has picked up notably over the past few months,” said Chris Bruen, NMHC senior director of research and chief economist. “Consumer prices rose by an annualized rate of 8.2% between February and May, according to the Consumer Price Index, and respondents to this month’s construction survey expect this to translate to higher construction costs over the coming year.”