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The National Multifamily Housing Council’s March 2026 Quarterly Survey of Apartment Construction & Development Activity indicates that conditions in the multifamily construction sector are showing moderate signs of improvement after an extended downturn in starts. Respondents to the survey, which tracks current development activity and input costs, reported a clear shift toward more active construction pipelines compared with three months earlier.
According to the survey, 31% of participants said they are initiating more multifamily projects than they were three months ago. By contrast, only 12% reported that they are starting fewer projects, while nearly half of respondents, 48%, said their level of construction starts has remained unchanged. The responses collectively point to a market that is no longer in broad decline and may be entering a period of gradual stabilization.
Developers also reported some easing in the construction delays that have hampered project timelines in recent years. Thirty-one percent of respondents indicated that they are experiencing fewer delays than three months ago. Only 2% said delays have increased, while 60% reported that the level of delays has stayed roughly the same. This represents a meaningful shift from prior periods when supply chain and labor challenges were broadly cited as key impediments to delivering new product.
On the cost side, the survey suggests a relatively stable or slightly easing environment for both labor and materials. Just 5% of respondents said that construction labor costs have increased in real terms since December, and only 10% said construction material costs have risen over that same period. While the data does not quantify the scale of any cost changes, it indicates that upward pressure on core inputs has largely abated for now.
Chris Bruen, senior director of research and chief economist at NMHC, said the latest findings may mark a turning point following three years of declining multifamily construction starts. He noted that activity appears to be stabilizing and may even be picking up modestly. At the same time, Bruen cautioned that the current reports of lower labor and materials costs are likely tied to how depressed construction activity has been. He added that a more substantial resurgence in multifamily development could again strain supply chains and a labor market already affected by lower immigration, suggesting that the current window of comparatively favorable construction conditions may not persist if development volumes accelerate meaningfully.
The post NMHC March 2026 Survey Shows Moderate Improvement in Multifamily Construction Market appeared first on CRE Market Beat.
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