The September 2025 Quarterly Survey of Construction & Development Activity (Construction Quarterly Survey for short) was conducted from September 3 – 18, 2025 and received 62 responses from leading multifamily construction and development firms.
The Construction Quarterly Survey began in March 2022, and in June 2024 the survey was revised to better capture current trends and the most relevant indicators in the multifamily construction market. Historical data from each of our surveys, both before and after revision, can be found as downloadable spreadsheets on our website.
Construction Indicators 3Q 2025 (% of Respondents)
Construction
46%
Experienced
Delays
Pricing
67%
Saw Deals
Repriced
Logistics
20%
Reported Labor Less Available
Logistics
33%
Reported Labor More Available
Inputs
18%
Experienced Materials Delays
In the September 2025 Construction Quarterly Survey, 46% of respondents reported experiencing construction delays in the jurisdictions they operate. This represents a 3-percentage point increase from the record-low reported last quarter (43% in June, 58% in March, 78% in December, and 52% in September). This also marks the second time on record that less than half of the respondents reported delays. Respondents continued to cite the Southeast (e.g., Atlanta, Charlotte, Orlando, etc.) as a region where delays are particularly acute (27% of respondents), followed by the Northwest Coast (San Francisco, Seattle, etc.), Rockies (Denver, etc.), and Texas (Dallas, Houston, Austin, etc.), all three of which were noted by 15.4% of respondents. The Great Lakes (Chicago, etc.) region – where many respondents (15%) noted to be an area of concern in June – was cited less frequently this round (by just 8% of respondents).
Of those experiencing delays, 75% reported delays in permitting (a decrease from 85% in June) and 85% reported experiencing delays in starts (an increase from 70% in June).
The most frequently cited cause of delays in starts over the past three months was economic feasibility, at 83% of respondents (an increase from 57% in June and 68% in March). More than half of the respondents also cited economic uncertainty (61%) and permitting, entitlement, professional services (52%) as reasons for delays.
Availability of construction financing remained a commonly cited cause for delayed starts at 35% of respondents, an increase from 29% in June. This marks the first increase after six consecutive quarters of decreases.
Over the past three months, how long, on average, have municipalities reported it would take before you receive building permits?
| September 2025 | June 2025 | March 2025 | |
|---|---|---|---|
| Up to 2 Months | 16% | 11% | 7% |
| 3-4 Months | 26% | 38% | 31% |
| 5-6 Months | 20% | 17% | 25% |
| 7-8 Months | 10% | 6% | 8% |
| 9+ Months | 13% | 13% | 17% |
| N/A | 15% | 15% | 13% |
Fifty-seven percent of respondents in September reported additional project requirements unrelated to actual construction being imposed in their jurisdictions, up from 45% in June and 54% in March. Those who reported additional project requirements highlighted offsite improvements, affordability requirements and impact fees.
The share of respondents who reported deals repriced up decreased to 26% from 38% in June, while those reporting deals repriced down increased to 41% from 34% in June. The share of those that reported no repricing of deals increased to 25% from 19% in June.
Those who saw deals repriced, in either direction, reported an average +5% change, nearly an equal magnitude as last quarter (+4%).
Overall market conditions: Our short-term market conditions index rose to 51 this quarter, indicating slightly more respondents expect the market to improve over the next three months rather than decline (18% compared to 16%). This reflects a more optimistic outlook compared to June, when the index value of 47 reflected negative expectations.
Respondents remained more optimistic about overall market conditions further into the future. In the medium term, the index stood at 54, with 26% of respondents expecting conditions to improve (compared to 18% who expect conditions to decline). The long-term index rose to 75, with 61% of respondents expecting conditions to improve (compared to 11% who expect conditions to decline).
Construction costs: Nearly half (48%) of the respondents expect construction costs to remain the same over the next three months, down from 51% in June and 48% in March. The construction cost index value of 53 for the short term indicates a greater share of respondents expect a decrease in costs (30%) compared to those who expect an increase in costs (23%). The index has finally risen above the breakeven value, after falling below in March.
Over the medium and long term, however, respondents expect construction costs to increase. Twenty-eight percent of respondents reported they expect construction costs to increase over the next 3-6 months compared to 25% who expect costs to decrease, resulting in a medium-term index value of 48. Forty-nine percent of respondents reported they expect construction costs to increase over the next 6-12 months compared to 23% who expect costs to decrease, yielding a long-term index value of 37.
| Overall Market Index | Construction Cost Index | |
|---|---|---|
| Over the next 3 months | 51 | 53 |
| Over the next 3-6 months | 54 | 48 |
| Over the next 6-12 months | 75 | 37 |
Equity financing: Fifteen percent of respondents reported they expect equity to become less available over the next three months compared to 11% who expect equity to become more available, resulting in an equity financing index value of 48 for the short term. The majority of respondents, meanwhile, (70%) expect the availability of equity financing to remain unchanged over the next three months.
We observed more optimistic expectations for equity over the medium and long term, with index values coming in at 60 and 82, respectively. Nearly a third of respondents (31%) said they expect equity financing to become more available over the next 3-6 months (compared to 11% who anticipate equity becoming less available) while 68% of respondents said they expect equity financing to become more available over the next 6-12 months (compared to just 5% who think it will become less available).
Debt Financing: Debt financing indexes above 50 reflect expectations that debt financing availability will improve over the next three months (an index value of 60), the next 3-6 months (69), and over the next 6-12 months (78).
Twenty-seven percent of respondents said they expect debt to become more available over the next three months compared to 7% who expect debt to become less available; 43% of respondents said they expect debt to become more available over the next 3-6 months compared to 5% who anticipate debt becoming less available; and 60% of respondents said they expect debt to become more available over the next 6-12 months compared to just 3% who thought the opposite.
| Equity Financing Index | Debt Financing Index | |
|---|---|---|
| Over the next 3 months | 48 | 60 |
| Over the next 3-6 months | 60 | 69 |
| Over the next 6-12 months | 82 | 78 |
Labor availability: Nearly half) of respondents (47%) reported they expect labor availability for multifamily construction to remain the same for the next three months. short-term index value of 48 indicates a greater share of respondents expecting less labor availability (27%) than those expecting more (23%).
The labor availability index also read 48 for the medium term, driven by 26% of respondents expecting more available labor and 31% expecting less. Thirty-nine percent of respondents expect availability to remain about the same over the next 3-6 months. Long-term expectations are less than optimistic, with an index value of 39 (20% of respondents expecting more available labor and 43% expecting less).
Material Availability: A majority of respondents (62%) reported that they expect the availability of materials related to multifamily construction to remain the same in the short term (over the next three months). Specifically, 23% of respondents expect materials to be less available over the next three months compared to 13% who think materials will become more available, resulting in a short-term materials availability index of 55.
The medium-term material availability index also came in at 55 this round, as 25% of respondents expect greater material availability over the next 3-6 months compared with 15% who expect less. Over half of the respondents (59%) reported that they expect availability to remain the same in the medium term.
Over the longer term, however, (the next 6-12 months ) respondents anticipate a decreasing availability of materials. Twenty-three percent of respondents expect greater material availability over this period compared with 27% who anticipate less availability, yielding a long-term index value of 48.
| Labor Availability Index | Materials Availability Index | |
|---|---|---|
| Over the next 3 months | 55 | 48 |
| 3-6 months from now | 55 | 48 |
| 6-12 months from now | 38 | 39 |
Twenty percent of respondents reported construction labor availability to be less available compared to three months ago, the greatest share recorded since March 2023. Still, a higher share of respondents (33%) reported experiencing more labor availability in the last three months.
Eighteen percent of respondents reported experiencing delay with specific materials related to multifamily construction, a decrease from 26% of respondents in both June and March. Of those reporting delays, emphasis was again placed on delays related to electrical gear.
Lastly, 11% of respondents reported an increase in subcontractor defaults over the past three months (down from 15% in June and March), while 77% reported no increase in defaults.
How does the availability of construction labor compare to three months ago?
| September 2025 | June 2025 | March 2025 | |
|---|---|---|---|
| More available | 33% | 32% | 28% |
| Less available | 20% | 11% | 16% |
| Roughly the same | 43% | 51% | 50% |
| N/A | 5% | 6% | 5% |
