Up to 83% of developers in a new survey say they have had to delay multifamily construction projects due to permitting issues.
The survey, done by the National Multifamily Housing Council, also shows an increasing number of respondents, at 56%, contending that projects were delayed because they were not economically feasible, an increase from 30% who indicated a similar trend earlier this year.
In a statement, Doug Bibby, president of the Washington-based National Multifamily Housing Council, said the survey results reveal the “deep challenges that builders and developers are facing as the economy continues to recover from the depths of the pandemic.”
Continued Bibby: “While we are encouraged by the overall prospects for the industry, skyrocketing construction costs and a lack of available labor makes it increasingly difficult and expensive for apartment homes to be built.”
And that trend, adds Bibby, is only “worsening the affordability challenges facing communities across the country over the long term.”
The survey also indicates that 100% of respondents have experienced price increases in materials, with 86% saying they had been impacted by a lack of materials.
Although lumber prices have very recently been on a decided downward slide, respondents to the survey said that as of earlier this year those prices have remained high, prompting contractors to re-price projects or make modifications to their projects.
Besides the price of lumber, respondents additionally said they were burdened by a lack of steel and copper availability, while also reporting shortages in drywall insulation, and cabinets and countertops.
By Garry Boulard
