Results from the September 2025 NMHC Quarterly Survey of Apartment Construction & Development Activity reflect a multifamily construction market showing signs of improvement in certain areas, although continued challenges and uncertainty in others.
Similar to June, less than half of respondents reported construction delays over the last three months, nearly half the frequency reported from 2022-2024. Economic feasibility and economic uncertainty remained the top reasons cited for delayed starts while staffing shortages were less common; respondents reported more available construction labor for the eighth consecutive quarter. While respondents still expected construction costs to increase over the coming year, they remained optimistic about overall market conditions and expect both debt and equity financing to become more available.
"The prevalence of construction delays appears to be on the decline, but private data providers are also showing fewer multifamily starts to begin with compared to last year,” noted NMHC’s Chief Economist and Senior Director of Research, Chris Bruen. “The primary cause of decreasing starts and construction delays is one and the same—the combination of low rent growth, persistently high interest rates and rising operating costs are making projects increasingly difficult to pencil.”
Forty-six percent of respondents reported experiencing construction delays over the last three months, up just 3 percentage points from the record low reported in June and down from 58% in March, 78% in December and 52% in September of last year. This represents the second time on record that less than 50% of respondents reported delays.
Regarding market conditions, the share of respondents who reported deals repriced down increased to 41% (from 34% in June), while those reporting deals repriced up decreased to 26% (from 38% in June).
Respondents reported improving labor availability. Thirty-three percent of respondents reported more available labor compared to three months ago while 23% thought labor had become less available.
When it came to short-term expectations, a market conditions index value of 51— just above the breakeven level of 50—reflects expectations that overall market conditions will improve over the next three months (albeit with significant disagreement among respondents).
An overall market index value of 54 for the medium term (3-6 months) and 75 for the long term (6-12 months) suggests that respondents are more optimistic about overall market conditions over these time frames, as was the case in the previous five quarters.
Construction Indicators 3Q 2025 (% of Respondents)
- 46% Experienced Construction Delays
- 67% Saw Deals Repriced
- 20% Reported Labor Less Available
- 33% Reported Labor More Available
- 18% Experienced Materials Delays
Based in Washington, D.C., the National Multifamily Housing Council (NMHC) is where rental housers and suppliers come together to help meet America’s housing needs by creating inclusive and resilient communities where people build their lives. We bring together the owners, managers, developers and suppliers who provide rental homes for 40 million Americans from every walk of life—including seniors, teachers, firefighters, healthcare workers, families with children and many others. NMHC provides a forum for leadership and advocacy that promotes thriving rental housing communities for all. For more information, contact NMHC at (202) 974-2300, email the Council, or visit NMHC's website at nmhc.org.
