The March 2025 Quarterly Survey of Construction & Development Activity (Construction Quarterly Survey for short) was conducted from March 4 – 18, 2025 and received 74 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 1Q 2025 (% of Respondents)
Construction
58%
Experienced
Delays
Pricing
75%
Saw Deals
Repriced
Logistics
16%
Reported Labor Less Available
Logistics
28%
Reported Labor More Available
Inputs
26%
Experienced Materials Delays
In the March 2025 Construction Quarterly Survey, 58% of respondents reported experiencing construction delays over the last three months, falling from 78% in December (52% in September and 70% in June).
Respondents continue to cite the Southeast (e.g., Atlanta, Charlotte, Orlando, etc.) as a region where delays are particularly acute (33% of respondents), followed by Texas (e.g., Dallas, Houston, Austin, etc.) at 25%, and both the Mid-Atlantic (e.g., DC, etc.) and Rockies (e.g., Denver, etc.) at 18%.
Of those experiencing delays, 79% reported delays in permitting, a decrease from the record high of 95% in December (87% in September and 77% in June). Reported delays in starts increased to 93% of respondents (from 90% in December and 80% in September), the highest value recorded since June 2022.
The most frequently cited causes for delays in starts over the past three months were economic uncertainty and economic feasibility, both at 68% of respondents (from 42% and 58%, respectively, in December), as well as permitting, entitlement, and professional services (58% of respondents; from 68% last quarter). Availability of construction financing remained frequently cited (33% of respondents; from 37% in December and 42% in September), although has now decreased for five consecutive quarters.
Staffing shortages as a cited cause of delayed starts remained low (5% of respondents) for the sixth consecutive quarter, while the share attributing delays to materials sourcing and delivery rose to 15% from 0% in the previous three quarters.
Over the past three months, how long, on average, have municipalities reported it would take before you receive building permits?
| March 2025 | December 2024 | September 2024 | |
|---|---|---|---|
| Up to 2 Months | 7% | 11% | 3% |
| 3-4 Months | 31% | 37% | 17% |
| 5-6 Months | 25% | 11% | 31% |
| 7-8 Months | 8% | 11% | 14% |
| 9+ Months | 17% | 19% | 21% |
| N/A | 13% | 11% | 14% |
Fifty-four percent of respondents this quarter reported additional project requirements unrelated to actual construction being imposed in their jurisdictions, down from 74% last quarter and 55% in September. Those who reported additional project requirements highlighted offsite improvements, green building requirements, impact fees and Affordability requirements.
The share of respondents who reported deals repriced down decreased to 50% (from 59% the previous two quarters), while those reporting deals repriced up increased to 25% (up slightly from 22% in December). The share reporting no repricing of deals rose to 22%, from 15% in December.
Those who saw deals repriced, in either direction, reported an average +4% change, up from an average of 0% reported last quarter.
Although the majority of respondents expressed the expectation that overall multifamily construction market conditions will remain the same (64% of respondents; down from 81% in December) over the next three months, the share expecting conditions to decline (i.e., that it will become more difficult to build) during this period rose to 28% (from 8% last quarter). The share who thought conditions will improve held at 8%.
Similarly to last quarter, roughly half (51%) of respondents thought conditions will remain the same over the next 3-6 months, and a majority (60%; down from 73% in December) expressed the expectation that conditions will improve over the next 6-12 months. Sixteen percent of respondents expect conditions will decline in the long term, up from 8% last quarter, while 19% thought conditions will remain the same (from 15% last quarter).
Expectations for multifamily construction costs over the next three months changed drastically from last quarter, with 40% of respondents expecting costs to increase (up from 8% in December and 11% in September). A plurality of respondents (48%) still thought construction costs will remain the same, while 11% (down from 23% last quarter and 32% in September) thought costs will decrease.
The share of respondents expecting a decrease in construction costs fell when considering both the next 3-6 months (14%, from 37% last quarter) and next 6-12 months (18%, from 31% last quarter), while a plurality of respondents reported an expectation for higher costs both over the medium term (43%, from 30% last quarter) and long term (51%, from 54% last quarter). Forty-one percent of respondents thought costs will remain the same over the next 3-6 months, and a quarter of respondents expect no change over the next 6-12 months.
What are your expectations for the overall multifamily construction market over the next 3 months, 3-6 months, and 6-12 months?
| I expect conditions will improve (i.e., easier to build) | I expect conditions will decline | I expect conditions will remain the same | Don’t know / N/A | |
|---|---|---|---|---|
| Over the next 3 months | 8% | 28% | 64% | 0% |
| 3-6 months from now | 25% | 21% | 51% | 3% |
| 6-12 months from now | 60% | 16% | 19% | 6% |
The majority of respondents expect both equity financing (69%; also 69% in December) and debt financing (64%; from 74% in December) availability to remain about the same over the next three months.
Only 4% of respondents expect equity to become more available over the next three months—down from 19% in December—while 20% expect equity to become less available (from 12% in December). Respondents reported greater optimism in their outlook for debt financing: 22% of respondents expect increased availability over the next three months, while 7% expect decreased availability (up from 0% in December).
Considering the next 3-6 months, both the share of respondents who thought equity (29%; from 41% last quarter) and, separately, debt financing (39%; from 42% last quarter) will become more available decreased; however, for both methods of financing, a plurality of respondents expect availability to remain about the same (46% regarding equity; 44% regarding debt).
Despite changing expectations in the short and medium term, a majority of respondents still anticipate more available financing over the next 6-12 months: 66% of respondents expect more available equity (from 69% in December) and 63% expect more available debt (from 77% in December). Nine percent of respondents (from 19% last quarter) thought equity financing would become less available over the next 6-12 months, and similarly, 7% of respondents thought the same regarding debt (from 4% last quarter).
Notably, the share of respondents for both equity and debt who selected “Don’t know / NA” increased from 0% in December to 11% and 10%, respectively, an indication of more perceived uncertainty in longer-term financing conditions.
What are your expectations for the availability of equity financing for multifamily construction over the next 3 months, 3-6 months, and 6-12 months?
| I expect equity to become more available | I expect equity to become less available | I expect availability to remain about the same | Don’t know / N/A | |
|---|---|---|---|---|
| Over the next 3 months | 4% | 20% | 69% | 7% |
| 3-6 months from now | 29% | 17% | 46% | 8% |
| 6-12 months from now | 66% | 9% | 14% | 11% |
Respondents reported mixed labor conditions, although with more signs of tightening compared to last quarter.
Half of respondents reported construction labor availability to be roughly the same as three months ago, down from 59% in December. The share reporting more available labor was relatively unchanged (28%, from 30% in December), while 16% reported labor to be less available—up from 0% in December—and the highest value seen since June 2023.
Twenty-six percent of respondents reported experiencing delays with specific materials (down from 30% in December), while 62% reported no specific material delays (up from 56% in December). Of those reporting delays, emphasis was again placed on delays related to electrical gear.
Lastly, 15% of respondents reported an increase in subcontractor defaults over the past three months (down from 30% in December), while 76% reported no increase in defaults (up from 52% in December).
How does the availability of construction labor compare to three months ago?
| March 2025 | December 2024 | September 2024 | |
|---|---|---|---|
| More available | 28% | 30% | 28% |
| Less available | 16% | 0% | 10% |
| Roughly the same | 50% | 59% | 55% |
| N/A | 5% | 11% | 7% |
