Multifamily developers continue to report delays in permitting and starts due to the coronavirus pandemic, according to the latest survey from the National Multifamily Housing Council (NMHC).
In the third edition of NMHC’s COVID-19 Construction Survey, conducted between May 11 and May 20, 53% of developer respondents reported construction delays in the jurisdictions where they work. Of this group, 85% reported delays in permitting, up from the 77% reported in the second edition and 76% in the initial survey, which was conducted March 27 to April 1. In addition, 78% are reporting delays in starts, up 8 percentage points from the end of April.
The NMHC survey continues to gauge the pandemic’s disruption on the multifamily industry and is indicating that construction is resuming as states continue to reopen in stages. Of the 53% of respondents reporting delays, only 37% cited these delays due to construction moratoriums.
Respondents said they are seeing an increase in pricing on materials. While only 29% reported being impacted by a lack of materials, the price increases rose to 17% from 5% and 4% in the first two surveys. On the bright side, 79% said they are not seeing a pricing impact, and 24% of respondents who are implementing new strategies (59%) said they are sourcing alternative building materials.
Labor availability has also been a positive, improving over the course of the three surveys; 70% said they have not been impacted by a labor shortage. In addition, 24% of developer respondents implementing new strategies reported that they are offering workforce incentives or other benefits.
The NMHC will continue its construction survey on an ongoing basis for the foreseeable future.
