Construction delays and high costs continue to plague the multifamily industry, according to a new survey from the National Multifamily Housing Council (NMHC). The quarterly survey found that 84 percent of respondents reported construction delays, while 58 percent said they had experienced repricing increases in projects. Materials costs, which have been growing ever since the pandemic threw a wrench in the supply chain, resulting in shortages and delays, have led developers to look at other options.
Thirty percent of survey respondents said they are sourcing more materials domestically, while 40 percent said they are using alternative products. The materials with the highest price growth were electrical components, which increased 13 percent, followed by exterior finishes and roofing, appliances, and insulation.
Despite these findings, there may be positive signs if you look at the trends. A smaller share of respondents reported permitting delays of 9 or more months than in September, and the price of lumber decreased by 5 percent. NMHC President Doug Bibby said that while the worst of construction and labor costs and delays may have passed, regulations at all levels of government are still having an outsized impact on multifamily development costs, and are hindering the construction of much-needed new housing.