Economic Feasibility Slightly Improves for Multifamily Construction

Developers are reporting an improvement in economic feasibility impacting multifamily construction delays, according to the latest research from the National Multifamily Housing Council’s June 2025 Quarterly Survey of Construction & Development Activity. In June, 43% of respondents reported construction delays, an improvement from the 58% of respondents in the March survey. As for the cause of such delays, 57% of respondents still said “project is not economically feasible at this time” but that marked the lowest rate seen since March 2023. Another 57% of respondents said “permitting, entitlement, professional services” caused delays, while 71% of respondents said “economic uncertainty” caused delays. Respondents could select more than one response. NMHC also added new questions related to construction labor and materials prices. Roughly half of respondents (48%) said they expect multifamily labor availability to remain about the same in the coming three months. Download the full research from NMHC here.