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NMHC: Rental Housing Developers Challenged by Delays, Lack of Financing Options
Development and rental housing firms continue to face significant challenges, the National Multifamily Housing Council said Wednesday, citing its latest NMHC Quarterly Survey of Apartment Construction & Development Activity. Delays in construction, a lack of financing options and overall economic infeasibility of projects caused by rising interest rates all are factors.
Delays are still expected in the current development environment, with 88% of respondents reporting delays, holding steady from the second quarter (90% in June, up from 79% in March and 84% in December). Of those experiencing delays, 79% reported delays in both permitting and starting construction.
Respondents experiencing delayed starts were most likely to cite the availability of financing as a cause (78% of respondents, up from 62%), followed by permitting, entitlement and professional services (74% of respondents) and economic infeasibility (61%).
“Housing providers continue to navigate economic uncertainty and steep financing challenges caused by high interest rates, increasing insurance costs, skyrocketing state and local taxes, and a lack of confidence in overall economic conditions,” said NMHC president Sharon Wilson Géno.
- ◦Development
