More than half (53%) of multifamily developer respondents reported construction delays in the jurisdictions where they operate, according to the third edition of the National Multifamily Housing Council (NMHC) COVID-19 Construction Survey. Of this group, 85% reported delays in permitting due to COVID-19, up from 77% in round two (conducted April 9-14) and 76% in the initial survey (conducted March 27-April 1).
Getting permits is a major problem for multifamily developers and construction firms, says the NMHC in its latest survey.
Survey respondents reporting construction delays also indicated a significant pause in starts, with 78% reporting delays, up 8 percentage points from the end of last month, and 19 percentage points from the first round.
More than three-quarters of multifamily developers said continue to face delays in starts, says the latest NMHC survey.
The NMHC Construction Survey is intended to gauge the magnitude of the disruption caused by the COVID-19 outbreak on multifamily construction. Additional findings include:
• 53% of developers reported a delay in construction. Of those developers, the percentage experiencing a delay in construction because of construction moratorium dropped from 62% in round one to 37% in round three, indicating that construction activity is resuming as states relax pandemic-related restrictions.
• Only 29% of respondents reported being impacted by a lack of materials, but the percentage of respondents experiencing price increases in materials jumped to 17%, from 5% in round one and 4% in round two. Despite this jump, 78% still report no price impact, and 24% of those implementing new strategies report they are sourcing alternative building materials, up 8 percentage points from the first survey.
Labor availability seems to be less of a problem for multifamily construction firms, says the NMHC survey.
• Labor availability has also improved over the course of the three surveys. Seventy percent of respondents said they were not impacted by labor shortages, up from 54% in round one and 57% in round two. This may be due in part to the fact that 24% of those implementing new strategies said they were offering workforce incentives or other benefits, up from 16% in round two.
Firms continue to innovate in the face of challenges posed by the outbreak. Fifty-nine percent of respondents indicated they have implemented new strategies to deal with the hurdles established by the virus’s continued presence. This is down from 75% in the last round and 73% in the first round. Many firms said they have implemented more than one strategy.
View the full survey results here and a comprehensive overview of the results here.
Additional resources, data, and materials from NMHC can be found here.
Related Stories
MFPRO+ News | Nov 15, 2023
Average U.S multifamily rents drop $3 to $1,718 in October 2023: Yardi Matrix
Multifamily fundamentals continued to soften and impact rents last month, according to the latest Yardi Matrix National Multifamily Report. The average U.S. asking rent dropped $3 to $1,718 in October, with year-over-year growth moderating to 0.4%, down 40 basis points from September. Occupancy slid to 94.9%, marking the first decline in four months.
Industrial Facilities | Nov 14, 2023
Some AEC firms are plugging into EV charging market
Decentralized electrical distribution is broadening recharger installation to several building types.
MFPRO+ Special Reports | Nov 14, 2023
Register today! Key trends in the multifamily housing market for 2024 - BD+C Live Webinar
Join the BD+C and Multifamily Pro+ editorial team for this live webinar on key trends and innovations in the $110 billion U.S. multifamily housing market. A trio of multifamily design and construction experts will present their latest projects, trends, innovations, and data/research on the three primary multifamily sub-sectors: rental housing, senior living, and student housing.
Multifamily Housing | Nov 9, 2023
Multifamily project completions forecast to slow starting 2026
Yardi Matrix has released its Q4 2023 Multifamily Supply Forecast, emphasizing a short-term spike and plateau of new construction.
MFPRO+ News | Nov 1, 2023
Washington, D.C., Queens, N.Y., lead nation in number of new apartments by zip code
A study of new apartment construction by zip code showed Washington D.C., and the Queens borough of New York City are the hottest multifamily markets since 2018, according to RentCafe.
Adaptive Reuse | Nov 1, 2023
Biden Administration reveals plan to spur more office-to-residential conversions
The Biden Administration recently announced plans to encourage more office buildings to be converted to residential use. The plan includes using federal money to lend to developers for conversion projects and selling government property that is suitable for conversions.
Sponsored | MFPRO+ Course | Oct 30, 2023
For the Multifamily Sector, Product Innovations Boost Design and Construction Success
This course covers emerging trends in exterior design and products/systems selection in the low- and mid-rise market-rate and luxury multifamily rental market. Topics include facade design, cladding material trends, fenestration trends/innovations, indoor/outdoor connection, and rooftop spaces.
MFPRO+ Special Reports | Oct 27, 2023
Download the 2023 Multifamily Annual Report
Welcome to Building Design+Construction and Multifamily Pro+’s first Multifamily Annual Report. This 76-page special report is our first-ever “state of the state” update on the $110 billion multifamily housing construction sector.
Mass Timber | Oct 27, 2023
Five winners selected for $2 million Mass Timber Competition
Five winners were selected to share a $2 million prize in the 2023 Mass Timber Competition: Building to Net-Zero Carbon. The competition was co-sponsored by the Softwood Lumber Board and USDA Forest Service (USDA) with the intent “to demonstrate mass timber’s applications in architectural design and highlight its significant role in reducing the carbon footprint of the built environment.”
