Multifamily developers continue to face delays in permitting and starts due to the COVID-19 pandemic, according to the fourth edition of the National Multifamily Housing Council (NMHC) COVID-19 Construction Survey, which was conducted between July 6 and 15.
According to the survey, more than half, or 57%, of developer respondents reported construction delays. Of those reporting delays, 83% cited permitting due to COVID-19, which remained close to the third-round survey’s 85%, but up from 77% and 76% in the first two surveys. The multifamily developers who indicated delays also are seeing a pause in construction starts, with 71% reporting delays. The main reasons for the delays in starts include permitting, entitling, and professional services, 56%; economic uncertainty, 52%; and the availability of construction financing, 46%.
Other key findings from the NMHC include:
- The majority of respondents have paused at least one construction project since mid-March: 23% of these respondents said they will definitely resume the project; 18% are uncertain about resuming; and 18% have since resumed their paused construction projects.
- Over a third, 36%, of respondents said they are being impacted by a lack of materials; this is the highest share recorded since NMHC began its construction survey in late March. Those experiencing price increases, 18%, remained unchanged from 17% during the third survey.
- The availability of labor has not had a big effect on the majority of multifamily developers. However, the share of respondents that said they are facing labor constraints rose 14 percentage points from 25% to 39%.
- Companies also continue to innovate and adapt as the COVID-19 pandemic brings new challenges: 52% indicated they have implemented new strategies to deal with the pandemic’s continued presence. This is down from 59% of respondents in the third round.
