NAHB Says Multifamily Housing Down in 2021 but Will Rebound in 2022

Regulatory and supply-side challenges coupled with slowing rent growth and rising vacancy rates will weaken the multifamily construction market in 2021. However, the development market should stabilize by 2022, according to economists from the National Association of Home Builders (NAHB) who participated in an online press conference as part of the 2021 NAHB International Builders' Show® virtual experience (IBSx).

"Though the multifamily sector is performing much better than nonresidential construction, developers are facing stiff headwinds in 2021," said NAHB chief economist Robert Dietz. "Shortages and delays in obtaining building materials, rising lumber and OSB prices, labor shortages and a more ominous regulatory climate will aggravate affordability woes and delay delivery times."