Materials Shortages, Skyrocketing Prices Will Lead to Construction Delays for Multifamily

Material shortages will almost certainly lead to development cost increases and project delays in the multifamily sector as rapidly rising prices continue to trouble the construction industry. 

A new survey from the National Multifamily Housing Council shows that builders are increasingly concerned about supply constraints and increasing costs, with 40% of respondents citing price increases north of 20% for their most impacted materials. And those concerns are led, of course, by continuing stress surrounding the sky-high price of lumber which is “creating a serious impediment for apartment developers and construction firms,” NHMC vice president of research Caitlin Walter writes in a recent piece analyzing the data.