Results from the latest National Multifamily Housing Council (NMHC) Quarterly Survey of Apartment Construction & Development Activity indicate mixed market conditions currently, but greater optimism over the longer term, NMHC said Wednesday. Fewer respondents reported delays or repricing of deals downward compared to three months ago, yet in a newly added question on whether market conditions will improve, responses came in below the break-even level of 50 for the short term.
That being said, although respondents expect increasing construction costs along with less available labor and materials over the coming year, more than half (55%) expect overall conditions to improve in six to 12 months.
“While the June survey results indicate improving conditions for multifamily construction—respondents reported greater availability of construction labor compared to three months ago and fewer overall delays—we also know that far fewer projects are being started to begin with,” said Chris Bruen, NMHC economist and senior director of research.
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