NMHC collected 46 responses from leading multifamily construction firms for the NMHC COVID-19 Construction Survey, Round 8. The survey was open from August 25th to September 17th, 2021. This was the eighth installment in a series of surveys aimed to help the industry stay on top of changing construction market conditions. The first round of this survey was conducted from March 27th to April 1st, 2020 and collected 135 responses. The seventh, and most recent, round of this survey was conducted from May 17th to June 1st, 2021 and collected 109 responses.
Note: There have been several questions added and/or removed over the course of the survey in an effort to gain more specific information around some of the ever-changing conditions, and to remove questions that no longer add relevant information.
In jurisdictions where you operate, are you experiencing construction delays?
| Round 8 | Round 7 | Round 6 | Round 5 | Round 4 | Round 3 | Round 2 | Round 1 | |
| Yes | 93% | 83% | 75% | 57% | 57% | 53% | 56% | 55% |
| No | 7% | 15% | 22% | 41% | 43% | 44% | 38% | 42% |
| N/A | 0% | 2% | 3% | 2% | 0% | 3% | 6% | 3% |
For respondents who reported experiencing construction delays:
Are you experiencing delays in permitting?
| Round 8 | Round 7 | Round 6 | Round 5 | Round 4 | Round 3 | Round 2 | Round 1 | |
| Yes | 83% | 80% | 77% | 90% | 83% | 85% | 77% | 76% |
| No | 17% | 19% | 23% | 10% | 17% | 5% | 17% | 18% |
| N/A | 0% | 1% | 0% | 0% | 0% | 10% | 6% | 7% |
Are you experiencing delays in starts?
| Round 8 | Round 7 | Round 6 | Round 5 | Round 4 | Round 3 | Round 2 | Round 1 | |
| Yes | 83% | 80% | 75% | 77% | 71% | 78% | 70% | 59% |
| No | 17% | 19% | 25% | 16% | 23% | 7% | 13% | 24% |
| N/A | 0% | 1% | 0% | 6% | 6% | 15% | 17% | 16% |
For respondents who reported experiencing delays in starts:
What is the cause of delays in starts at this point? (Respondents could select multiple options; totals will not add to 100%)
| Round 8 | Round 7 | Round 6 | Round 5 | Round 4 | |
| Economic uncertainty | 14% | 27% | 37% | 58% | 52% |
| Project is not economically feasible at this time | 29% | 56% | 30% | 38% | 16% |
| Permitting, entitlement, professional services | 91% | 70% | 72% | 67% | 56% |
| Health and safety concerns | 9% | 5% | 14% | 13% | 28% |
| Availability of construction financing | 0% | 7% | 21% | 46% | 48% |
| Other/specific delays | 20% | 19% | 12% | 0% | 8% |
What is the estimated duration of the delays in starts?
| Round 8 | Round 7 | Round 6 | Round 5 | Round 4 | |
| Less than 6 months | 69% | 69% | 65% | 63% | 52% |
| 6-12 months | 29% | 26% | 30% | 21% | 44% |
| 13-18 months | 3% | 3% | 5% | 4% | 0% |
| More than 18 months | 0% | 0% | 0% | 0% | 0% |
| Other | 0% | 1% | 0% | 13% | 4% |
Have you paused or canceled any upcoming projects, or those scheduled to take place since the onset of COVID-19 in Mid-March 2020?
| Round 8 | Round 7 | Round 6 | Round 5 | Round 4 | |
| Paused but will definitely resume | 9% | 19% | 12% | 26% | 23% |
| Paused with uncertainty around resuming | 4% | 9% | 12% | 9% | 18% |
| Paused earlier in pandemic but have resumed | 26% | 29% | 24% | 31% | 18% |
| Canceled | 2% | 3% | 5% | 0% | 2% |
| Have not paused or canceled operations at this point | 59% | 40% | 46% | 33% | 36% |
| Other | 0% | 0% | 1% | 0% | 3% |
Have you experienced deals being repriced?
| Round 8 | Round 7 | Round 6 | Round 5 | Round 4 | |
| Yes, priced down 5% or more | 0% | 3% | 5% | 11% | 15% |
| Yes, priced down 3-4% | 0% | 1% | 5% | 4% | 11% |
| Yes, priced down 1-2% | 0% | 0% | 1% | 11% | 15% |
| No | 9% | 8% | 22% | 42% | 31% |
| Yes, priced up 1-2% | 7% | 2% | 16% | 13% | 8% |
| Yes, priced up 3-4% | 13% | 12% | 26% | 8% | 3% |
| Yes, priced up 5% or more | 72% | 69% | 14% | 6% | 0% |
| N/A | 0% | 5% | 9% | 6% | 16% |
Have you experienced issues in obtaining financing or construction loans?
| Round 8 | Round 7 | Round 6 | Round 5 | Round 4 | |
| Yes, unable to obtain at all | 0% | 0% | 0% | 4% | 2% |
| Yes, unable to obtain at desired price point | 0% | 7% | 9% | 11% | 21% |
| Yes, some delays in obtaining but otherwise fine | 22% | 25% | 32% | 36% | 36% |
| No, obtaining financing without issue | 63% | 44% | 33% | 30% | 13% |
| N/A | 15% | 24% | 26% | 19% | 28% |
Are you impacted by lack of materials?
| Round 8 | Round 7 | Round 6 | Round 5 | Round 4 | Round 3 | Round 2 | Round 1 | |
| Yes | 98% | 86% | 83% | 80% | 36% | 29% | 28% | 24% |
| No | 2% | 10% | 13% | 20% | 57% | 65% | 67% | 73% |
| N/A | 0% | 4% | 4% | 0% | 7% | 5% | 5% | 3% |
Are you seeing price increases in materials?
| Round 8 | Round 7 | Round 6 | Round 5 | Round 4 | Round 3 | Round 2 | Round 1 | |
| Yes | 100% | 100% | 93% | 82% | 18% | 17% | 4% | 5% |
| No | 0% | 0% | 4% | 16% | 64% | 78% | 87% | 88% |
| N/A | 0% | 0% | 3% | 2% | 18% | 5% | 10% | 7% |
For respondents who reported experiencing price increases:
The following question was modified in order to gain separate pricing information from the new questions on lumber specifically. To view the pricing question asked in previous rounds, please view the results from Round 7, Round 6.
Please indicate the magnitude of price increases (or decreases) for the most impacted materials, excluding lumber, over the past 3 months.
| Round 8 | |
| Average price increase | 13% |
| Median price increase | 10% |
Specifically, what is the magnitude of price increases (or decreases) to lumber experienced over the past 3 months?
| Round 8 | |
| Average price increase | - 24% |
| Median price increase | - 20% |
Which of the following have you had to, or chosen to do in response to the increasing price of lumber? (Respondents could select multiple options; totals will not add to 100%)
| Round 8 | Round 7 | |
| Delayed start of project(s) | 16% | 39% |
| Paused project(s) | 11% | 21% |
| Delayed project completion | 7% | 12% |
| Scrapped project(s) entirely | 0% | 7% |
| Used alternative materials | 23% | 35% |
| Continued project(s) but made price-saving modifications/eliminations to other materials or fixtures | 50% | 49% |
| Repriced project(s) | 50% | 62% |
| Changed lumber buying practices, such as new or increased use of lumber brokers | 48% | 35% |
| Other | 9% | 11% |
Are you impacted by availability of labor?
| Round 8 | Round 7 | Round 6 | Round 5 | Round 4 | Round 3 | Round 2 | Round 1 | |
| Yes | 88% | 47% | 36% | 20% | 39% | 25% | 44% | 41% |
| No | 10% | 49% | 53% | 78% | 56% | 70% | 54% | 57% |
| N/A | 2% | 5% | 11% | 2% | 5% | 5% | 2% | 2% |
The following two questions were added in Round 8 to gain specific information about how construction and development firms are dealing with labor availability issues.
There has been considerable talk about a shortage of construction labor in the apartment industry (as well as others). Based on the markets you’re familiar with, how does construction labor availability compare with before the pandemic?
| Round 8 | |
| About the same | 15% |
| Less available at pre-pandemic compensation levels, but about the same availability at higher compensation levels | 32% |
| Less available even with higher compensation levels | 54% |
For respondents who reported increasing compensation levels:
How much have you raised compensation for construction laborers compared with pre-pandemic levels?
| Round 8 | |
| Average compensation increase | 12% |
| Median compensation increase | 10% |
Have you implemented any new strategies to deal with the current hurdles?
| Round 8 | Round 7 | Round 6 | Round 5 | Round 4 | Round 3 | Round 2 | Round 1 | |
| Yes | 70% | 63% | 54% | 60% | 52% | 59% | 75% | 73% |
| No | 28% | 33% | 30% | 36% | 41% | 33% | 20% | 23% |
| N/A | 3% | 4% | 16% | 4% | 7% | 8% | 5% | 5% |
For respondents who reported implementing new strategies to deal with the current hurdles:
What new strategies have you implemented to deal with the current situation (respondents could select multiple options- cannot be summed to 100%)
| Round 8 | Round 7 | Round 6 | Round 5 | Round 4 | Round 3 | Round 2 | Round 1 | |
| Sourcing materials from alternative locations | 64% | 63% | 68% | 80% | 56% | 50% | 48% | 43% |
| Sourcing alternative building materials | 82% | 75% | 51% | 57% | 28% | 24% | 19% | 16% |
| Using technology to replace in-person transactions like inspections and approvals | 29% | 28% | 41% | 50% | 47% | 59% | 63% | 67% |
| Staggering shifts to reduce on-site exposure | 14% | 15% | 22% | 37% | 59% | 54% | 58% | 52% |
| Offering workforce incentives or other benefits | 29% | 22% | 11% | 23% | 22% | 24% | 16% | 14% |
| Other | 11% | 8% | 24% | 7% | 16% | 15% | 13% | 14% |
