Multifamily housing developer “confidence” remained negative in the fourth quarter of 2022, though it improved slightly, according to the Multifamily Market Survey released this week by the National Association of Home Builders.
Lance Swank, president and co-owner of Sterling Group, Inc. in Mishawaka, Ind., and chairman of NAHB’s Multifamily Council, said in prepared remarks that many developers continue to see strong demand for multifamily housing, but in some markets, supply is catching up to demand.
“In most markets, developers face challenges with regulatory costs and delays, and obtaining financing for new construction,” Swank said.
NAHB Chief Economist Robert Dietz said in prepared remarks, “It is appropriate that multifamily developers are expressing some caution, given the way starts have been outpacing completions.
“This is also consistent with NAHB’s forecast that multifamily production will slow measurably from the very strong rates it sustained through most of 2022.”
NAHB measures builder and developer sentiment about current production conditions and another that reflects a combination of the construction of low-rent units-apartments that are supported by low-income tax credits or other government subsidy programs; market-rate rental units-apartments that are built to be rented at the price the market will hold; and for-sale units—condominiums.
About two weeks ago, GlobeSt.com reported that NAHB forecasted multifamily starts would slow in 2023.
