2023 NMHC 50 Analysis: Developers and Builders

Fueled by a strong rebound in demand in 2021 and into the early part of 2022, the multifamily industry put new construction into high gear. Permits and starts rose double digits during the year to levels not seen since the mid-1980s.

Completions continued to lag the jump in permits and starts as significant challenges persisted, lengthening construction times. Many of the recurring issues around entitlement and permitting delays, as well as materials and labor availability and pricing, that cropped up during the pandemic continued to dog multifamily developers and builders.

However, increasing economic uncertainty tied to higher inflation and rising interest rates caused some firms to start to pump the brakes as 2022 progressed. Most notably, multifamily firms became increasingly concerned about federal monetary policy’s effect on the availability of construction financing, which in turn forced some to delay project starts.

Our top developer and builder rankings reflect this surge in new multifamily activity, with most firms on the lists noting significant increases in units started.

U.S. Multifamily Permits, Completions And Starts (In 000s)

Multifamily (5+) permits increased 10.3 percent to 627,200 in 2022, while starts rose 15.4 percent to 533,200. Completions fell slightly from 363,700 in 2021 to 359,900.

Source: U.S. Census Bureau

Growth Story

Both builders and developers continued the pace begun in 2021 in 2022. Both the Builder and Developer lists featured many new firms as well as the return of some previous Top 25 firms.

NMHC’s Newest Survey Product Focuses on Construction

NMHC's Quarterly Survey of Construction & Development Activity offers a regular snapshot of apartment construction delays, materials price changes and labor availability. Data below as of December 2022.