According to the National Multifamily Housing Council (NMHC), their latest Quarterly Survey of Apartment Construction & Development Activity for September 2024 has revealed a gradual improvement in the construction market. While there has been a notable decrease in reported delays, with only 52% of respondents experiencing them, deals are still being repriced by 86% of those surveyed.
Despite this positive trend, there has been a significant decline in the number of construction projects taking place. Data from the Census Bureau shows that multifamily starts have decreased by 37.1% between Q2 2023 and Q2 2024. NMHC warns that if this slowdown continues, it will worsen existing affordability challenges over time.
Sharon Wilson Géno, President of NMHC stated: “The findings from our September survey clearly indicate that rental housing providers are facing ongoing challenges when it comes to constructing new communities.” She cited economic uncertainty and high costs such as interest rates and insurance as major obstacles for developers trying to build much-needed housing units.
Géno also urged lawmakers to implement effective solutions for increasing affordable housing options instead of proposing regulations that would drive up costs even further. This includes removing barriers to building and providing incentives for new construction projects.
