More than Labor Shortage for Multifamily Rising Costs

Much has been made about the impact on construction of a weakened skilled labor force, but the shortage of workers isn’t the only reason some projects are delivering late and costing more. Increasingly difficult apartment designs and regulatory issues are among several factors that have slowed progress at a time when units can’t be delivered fast enough.

Apartment construction is on overload and the bag isn’t getting slimmer, although starts are expected to be down 10 percent this year. For an industry that strives to impress renters, multifamily may have to rethink its approach to meeting the demand of amenity-driven consumers to keep projects rolling while managing costs.