The multifamily housing construction sector is showing clear signs of improvement, according to the National Multifamily Housing Council’s June 2025 Construction Quarterly Survey. While challenges remain, the latest survey results reveal notable progress in permitting and construction timelines, labor availability and market conditions.

One of the most encouraging findings is a significant decline in construction delays across jurisdictions. Only 43% of respondents reported delays in the second quarter of 2025, marking a sharp drop from 58% in the first quarter and from even higher figures throughout 2024, when delays ranged from 70% to as high as 81% in early quarters. This 43% rate is the third lowest recorded since the survey began and represents the first time the rate has fallen below 50%, signaling a positive shift in the pace of new developments.

Regionally, the Southeast, which includes major cities such as Atlanta, Charlotte and Orlando, still faces the highest issues, with 35% of respondents reporting problems. In contrast, the Midwest, Northeast, South Florida, and Southwest each reported only 5%, illustrating a substantial regional variation in permitting and construction challenges.

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Economic uncertainty remains the leading cause of delayed project starts, cited by 71% of respondents— an increase from 68% in March and a dramatic rise from 42% in December 2024. Additionally, factors such as economic feasibility and hurdles related to permitting, entitlement, and professional services were mentioned by 57% of participants. Though the availability of construction financing has improved slightly, with 29% reporting delays—which is down from 33% in March and 37% in December—the share of respondents citing financing as a barrier has been steadily declining over the past six quarters. Meanwhile, delays linked to material sourcing have increased to 21%, up from 15% in March and virtually nonexistent in December 2024 and June 2024.

Looking ahead, 67% of those surveyed expect equity financing availability to remain steady in the short term, while 55% anticipate stable conditions in the medium term, a figure that has been decreasing over the past three quarters. Interestingly, 70% are optimistic that more equity will become available within the next six to 12 months. Debt financing outlooks are similarly cautious but stable, with 65% expecting short-term availability to remain unchanged.

Labor availability has also seen a slight improvement. Half of the respondents reported labor availability as stable, up marginally from 50% in March, while 32% noticed an increase in available labor, compared to 28% in the first quarter and 30% in the last quarter of 2024. This suggests a slow but steady easing of workforce constraints in the construction industry.

Market conditions point to a dynamic environment for multifamily housing deals. In the second quarter, 34% of respondents experienced deals being repriced downward, a notable decline from 50% in March and 59% in December 2024. Meanwhile, upward repricing occurs in 38% of deals, a sharp increase from 25% earlier this year and 22% at the end of last year.

When examining overall market sentiment, the index for the next three months stands at 47, indicating that 17% of respondents expect market conditions to worsen, while 11% foresee an improvement. This reflects a more optimistic outlook compared to the previous quarter’s score of 40, when 28% anticipated a decline and only 8% expected positive change.

Construction costs continue to be a concern, with an index value of 43 revealing that 32% of respondents predict rising costs compared to 17% who foresee decreases. There is also a slight uptick in subcontractor defaults, with 15% reporting increases; however, the majority—74%—have observed no such rises.

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