New Survey Shows Increased Housing Construction Project Delays

A combination of concerns about an upcoming recession, along with ongoing supply chain issues, has pushed back housing projects across the country, according to a new survey.

The National Multifamily Housing Council is reporting that upwards of 90% of multifamily developers and owners say they have experienced project delays heading into this fall, with the number one reason for those delays being the economic feasibility of the project.

Equally strong numbers were seen in the 78% of respondents who said they have experienced delays in permitting.

Around 41% of respondents said the project delays have been due to “economic uncertainty,” while another 53% pointed to “materials sourcing and delivery” as a major impediment.

In a narrative that has challenged home builders at least since the Covid 19 outbreak, 76% of respondents reported price increases with their individual projects.

Those price increases varied, depending upon the material: respondents said electrical components were up by around 10%, with exterior roofing and finishes seeing a 6% jump. Appliances and insulation costs were up by 5%.

In a statement, Doug Bibby, president of the National Multifamily Housing Council, remarked: “The nation is facing extraordinary housing affordability in the wake of the pandemic.”

Bibby added that “lawmakers at all levels of government should look at every policy option available to them to reform antiquated zoning, streamline the development process and incentivize the building of new housing of all types and at all prices points.”

​By Garry Boulard

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