- October 5, 2023
- MFE Staff
Significant challenges—including delays in construction, a lack of financing options, and economic infeasibility of projects— continue to hinder multifamily developers.
According to the National Multifamily Housing Council (NMHC) Construction Survey in September, 88% of respondents reported delays, holding steady with the prior quarter. Of those who reported delays, 79% cited delays in permitting and 79% noted start delays.
Conducted between Sept. 5 and 18, the NMHC quarterly survey found that of those experiencing delayed starts, the primary cause cited by 78% of respondents was the limited availability of financing, up from 62% in the prior quarter. This was followed by 74% of respondents reporting permitting, entitlement, and professional services and 61% citing economic infeasibility.
“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 conditions,” said NMHC president Sharon Wilson Géno.
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