More than half (53%) of multifamily developer respondents reported construction delays in the jurisdictions where they operate, according to the third edition of the National Multifamily Housing Council (NMHC) COVID-19 Construction Survey. Of this group, 85% reported delays in permitting due to COVID-19, up from 77% in round two (conducted April 9-14) and 76% in the initial survey (conducted March 27-April 1).
Getting permits is a major problem for multifamily developers and construction firms, says the NMHC in its latest survey.
Â
Survey respondents reporting construction delays also indicated a significant pause in starts, with 78%Â reporting delays, up 8 percentage points from the end of last month, and 19 percentage points from the first round.
More than three-quarters of multifamily developers said continue to face delays in starts, says the latest NMHC survey.
Â
The NMHC Construction Survey is intended to gauge the magnitude of the disruption caused by the COVID-19 outbreak on multifamily construction. Additional findings include:
• 53% of developers reported a delay in construction. Of those developers, the percentage experiencing a delay in construction because of construction moratorium dropped from 62% in round one to 37% in round three, indicating that construction activity is resuming as states relax pandemic-related restrictions.
• Only 29% of respondents reported being impacted by a lack of materials, but the percentage of respondents experiencing price increases in materials jumped to 17%,  from 5% in round one and 4% in round two. Despite this jump, 78% still report no price impact, and 24% of those implementing new strategies report they are sourcing alternative building materials, up 8 percentage points from the first survey.
Labor availability seems to be less of a problem for multifamily construction firms, says the NMHC survey.
• Labor availability has also improved over the course of the three surveys. Seventy percent of respondents said they were not impacted by labor shortages, up from 54% in round one and 57% in round two. This may be due in part to the fact that 24% of those implementing new strategies said they were offering workforce incentives or other benefits, up from 16% in round two.
Firms continue to innovate in the face of challenges posed by the outbreak. Fifty-nine percent of respondents indicated they have implemented new strategies to deal with the hurdles established by the virus’s continued presence. This is down from 75% in the last round and 73% in the first round. Many firms said they have implemented more than one strategy.
View the full survey results here and a comprehensive overview of the results here.
Additional resources, data, and materials from NMHC can be found here.
Related Stories
Coronavirus | Oct 1, 2020
The Weekly show: Decarbonizing Chicago, re-evaluating delayed projects, and the future of the jobsite
The October 1 episode of BD+C's "The Weekly" is available for viewing on demand.
Coronavirus | Sep 28, 2020
Cities to boost spending on green initiatives after the pandemic
More bikeways, car restrictions, mass transit, climate resilience are on tap.
Coronavirus | Sep 28, 2020
Evaluating and investing resources to navigate past the COVID-19 pandemic
As AEC firm leaders consider worst-case scenarios and explore possible solutions to surmount them, they learn to become nimble, quick, and ready to pivot as circumstances demand.
Coronavirus | Sep 24, 2020
The Weekly show: Building optimization tech, the future of smart cities, and storm shelter design
The September 24 episode of BD+C's "The Weekly" is available for viewing on demand.
Coronavirus | Sep 10, 2020
Mobile ordering is a centerpiece of Burger King’s new design
Its reimagined restaurants are 60% smaller, with several pickup options.
Coronavirus | Sep 9, 2020
Prefab: Construction’s secret weapon against COVID-19
How to know if offsite production is right for your project.
Coronavirus | Sep 3, 2020
The Weekly show: JLL's construction outlook for 2020, and COVID-19's impact on sustainability
The September 3 episode of BD+C's "The Weekly" is available for viewing on demand.Â
Coronavirus | Sep 1, 2020
6 must reads for the AEC industry today: September 1, 2020
Co-working developers pivot to survive the pandemic, and the rise of inquiry-based learning in K-12 communities.
Coronavirus | Aug 28, 2020
7 must reads for the AEC industry today: August 28, 2020
Hotel occupancy likely to dip by 29%, and pandemic helps cannabis industry gain firmer footing.
Coronavirus | Aug 27, 2020
8 must reads for the AEC industry today: August 27, 2020
Extended-stay hotels are the lodging sector's safest bet, and industrial real estate faces short-term decline.