Multifamily Developers Balance Rising Costs Against Growth Opportunities

It is a great time to be in the multifamily space right now and that includes developers, which are celebrating innovation in the space, not to mention robust rents that make projects easier to pencil.  Still, this group does have its special concerns, which were also the topic of a panel discussion held at GlobeSt Multifamily conference held this week. In short, multifamily development has gone through a major shift during COVID and is continuing to change as we move to a post-pandemic landscape.

“The unknown is what scares developers the most,” says Jeff Amengual, CEO & President of Praxis Modular. Costs are going up and there are labor shortages. “We are behind the 8-ball. With the shortage of skilled labor and increase of the hourly wage we are not getting quality or speed.”