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NMHC Survey Charts Continued Delays in Construction
Seventy percent of respondents to the NMHC Quarterly Survey of Apartment Construction & Development Activity reported experiencing construction delays over the past three months, the National Multifamily Housing Council said Tuesday. This marks the fourth consecutive quarter of decline in reported delays, down from 81% in March, 84% in December 2023 and 88% in September 2023. NMHC noted that although this may suggest an improving environment, construction delays are still highly expected.
Seventy-seven percent of those experiencing delays reported delays in permitting, slightly lower than in March (79%) and last December (84%). Reported delays in starts fell for the second consecutive quarter to 84% of respondents. Meanwhile, the share of respondents who reported deals being repriced up rose to 20% (from 13% in March and 23% in December).
Eighty percent of respondents expressed confidence that overall multifamily construction market conditions will remain the same over the next three months, with 14% of respondents expecting conditions will decline and 5% expecting they will improve. However, a higher share of respondents expressed an expectation that overall conditions will improve in the medium and long term.
“Today’s survey makes it clear that rental housing providers continue to face real challenges when it comes to the construction of new communities,” said NMHC President Sharon Wilson Géno. “Construction costs remain high while housing providers continue to deal with economic uncertainty, high interest rates, rising insurance costs as well as high state and local taxes. However, there does look to be more confidence that over the medium and longer terms overall markets conditions will improve.”
- ◦Development
