The March 2026 NMHC quarterly survey of apartment construction and development activity suggests moderate signs of improvement in the multifamily construction market. Survey respondents noted an increase in project starts, fewer construction delays and lower material and labor costs. The survey collected 42 responses from leading multifamily developers between March 4 and March 18, 2026.
Nearly a third (31%) of respondents said they are starting more projects than they were three months ago, compared to 12% who said they were starting fewer projects and 48% who reported unchanged starts. The results indicate that multifamily project activity is largely steady or increasing after three years of declining starts.
Thirty-one percent of respondents reported fewer construction delays than three months ago; just 2% reported more delays; and a majority (60%) reported delays were relatively unchanged. Labor costs remain stable for most firms, with only 5% reporting real-term increases, while 10% said material costs have increased since December.
"This month's survey results suggest that we may finally be seeing multifamily construction activity stabilize or even pick up modestly after three years of decreasing starts," noted NMHC Senior Director of Research and Chief Economist, Chris Bruen.
"However, the lower costs for labor and materials being reported are likely a result of construction activity being so depressed; a more substantial increase in multifamily development could start to put pressure on supply chains and a labor market diminished from lower immigration."
Most respondents (69%) reported labor costs rising in line with inflation, 21% saw slower growth or decreases and just 5% reported faster increases. Material costs also mostly tracked inflation, with 62% saying they increased in line with inflation, 24% saying they increased more slowly or decreased and 10% saying they increased faster than inflation.
Looking ahead, 21% expect material costs to outpace inflation in the short term and 33% anticipate faster growth over 6–12 months. Labor cost expectations remain more stable, though 29% expect longer-term acceleration.
Survey respondents were overwhelmingly positive about the future. While most (81%) believe multifamily construction conditions will remain the same over the next three months, optimism grows over 6–12 months, with 68% expecting conditions to improve. Some of this optimism may be driven by expectations for improved financing.
Nearly 70% expect equity financing to become more available in 6–12 months, compared to 2% who expect less; 37% expect debt financing to ease over the same horizon, compared to 2% who expect less.
Near-term construction costs are expected to stabilize, with 43% forecasting slower growth or decreases, 50% expecting costs to track inflation and only 7% anticipating faster-than-inflation increases. Over 6–12 months, expectations are more mixed: 48% expect costs to remain steady, 26% anticipate slower growth or decreases and 24% foresee faster increases.
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