Uncertainty and volatility surrounding tariffs and fiscal policy are rippling through the commercial real estate sector, unsettling everything from investment decisions to project timelines. Nowhere is this disruption more evident than in multifamily construction, according to the latest quarterly survey from the National Multifamily Housing Council (NMHC).
The NMHC’s newly updated survey, which drew responses from 47 leading multifamily construction and development firms, offers a detailed look into the current state of the industry. The survey, revised to provide deeper insights, breaks down the findings into key areas: permitting and construction, market conditions and pricing, labor and logistics, and material inputs.
Construction delays remain a persistent challenge, though the situation has improved somewhat compared to last year. In the jurisdictions where these firms operate, 43% reported experiencing construction delays, while 49% said they were not facing such issues, and 9% did not respond. This marks a notable improvement from June 2024, when 70% of respondents reported delays. Regional differences were also apparent: in the Southeast, 35% of respondents cited delays, a decrease from 47% in June 2024. Other regions saw more modest mentions, generally between 5% and 15% of respondents, according to the NMHC.
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Permitting delays, however, have worsened. As of June 2025, a striking 85% of respondents reported delays in securing permits, compared to 77% a year earlier. Only 10% reported not experiencing delays, and 5% did not respond. The wait times for building permits paint a sobering picture: 11% of respondents said it would take up to two months to receive permits, 38% reported waits of three to four months, 17% said five to six months, 6% expected seven to eight months, and 13% faced waits of at least nine months, according to the NMHC survey.
When it comes to project starts, the industry is seeing gradual improvement. In 2024, 84% of respondents experienced delays in starting projects. By June 2025, that number had dropped to 70%, with 20% saying they were not experiencing delays and 10% not responding.
Financial uncertainty is also reshaping deals. Approximately 72% of respondents reported seeing deals repriced in the second quarter. Expectations for construction costs are mixed: 52% anticipate costs will rise over the next six to twelve months, 20% expect a decrease, and 26% believe costs will remain steady. Looking at a shorter time frame of three to six months, 46% expect costs to increase, 15% foresee a decrease, and 37% predict no change, according to the NMHC.
Labor availability is another looming concern. Over the next three to six months, 28% of respondents expect labor to become more available, 30% predict it will become less available, and 37% think it will remain about the same. Looking further ahead, over the next six to twelve months, 43% expect labor to become less available, 22% see it becoming more available, and 28% anticipate no change.
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