As the COVID-19 crisis has continued to spread across the U.S., NMHC launched a series of surveys aimed to help the apartment industry stay on top of changing construction market conditions. This is the second installment; we conducted the survey from April 7-14, 2020, and received 84 responses from leading multifamily construction firms. Results will be compared with the first survey, which was conducted March 27-April 1, 2020, and received 135 responses.
Here are the major takeaways. (Click here to view full survey results.)
More than half of respondents are experiencing construction delays
More than half (56 percent) of respondents said that they are currently experiencing construction delays in the jurisdictions where they operate, virtually unchanged from the 55 percent of respondents who reported delays in last month’s survey. Of this group, 77 percent reported experiencing delays in permitting (compared to a similar 76 percent from last survey) and 70 percent reported experiencing delays in starts, up 11 percentage points from the end of last month.
This time around, however, just 40 percent of respondents faced with construction delays attributed their setbacks to the presence of a construction moratorium, down from 62 percent in the previous survey.
Over a quarter of respondents are affected by a lack of materials
A little more than a quarter (28 percent) of respondents said a lack of materials is affecting their construction operations, up slightly from 24 percent at the end of March.
When those respondents affected by a lack of materials were asked to cite specific areas of issue, the top responses were cabinets and countertops (43 percent), flooring (9 percent), fixtures (13 percent) and lumber (9 percent). Cabinets and countertops topped the list of materials in short supply in the previous round as well, when 42 percent of respondents cited shortages.
About one-quarter (26 percent) said there have been issues with closed facilities or international sourcing, some of which has occurred due to infected employees or enactment of a moratorium.
Respondents gave mixed responses on COVID-19 effects on labor availability
Forty-four percent of respondents indicated that COVID-19 outbreak-related labor constraints are affecting construction operations, a marginal increase from 41 percent of respondents last round. The majority (54 percent), meanwhile, still say they have not yet been affected.
Nearly half (49 percent) of the operators currently facing labor constraints said that workers were simply not showing up to work—down from 71 percent in last survey—either because the workers were infected or concerned about getting infected, had obligations with children home from school or were confused about moratoriums on construction in their jurisdiction.
Though construction continues, survey respondents report there has been emphasis on safety and changing of some standards (19 percent) in the work environment, which has predominantly created smaller crews on site.
Most firms are implementing new strategies to deal with current hurdles
Three-quarters of respondents (75 percent) indicated that they have implemented new strategies to deal with the hurdles forming in the virus’s wake—up slightly from the 73 percent last round who respondent similarly—with many of those firms indicating they have implemented more than one strategy.
The most popular strategies implemented by respondents include sourcing materials from alternative locations (48 percent this round/43 percent last round), staggering shifts to reduce on-site exposure (58 percent/52 percent) and using technology to replace in-person transactions like inspections and approvals (63 percent/67 percent).
Other strategies reported include sourcing alternative building materials (19 percent this round/16 percent last round), offering workforce incentives or other benefits (16 percent/14 percent) or changing cleaning practices and staff protocols on the worksite to ensure safety (11 percent/6 percent). Several operators cited the usage of personal protective equipment (PPE), social distancing and daily temperature checks to maintain the safest work environment possible.
