SANTA BARBARA, Calif.--(BUSINESS WIRE)--Longer-than-anticipated construction times kept new multifamily unit deliveries, once expected to peak in 2017, only slightly ahead of last year’s pace through three quarters of the year, per a new report recently released by Yardi® Matrix.
A shortage of skilled construction labor is the primary reason for the lagging deliveries, with the complexity of construction materials and structures and drawn-out government approval processes also contributing. “Longer construction periods for multifamily properties could have a substantial impact on the market. We now expect the cycle peak for deliveries to come in 2018 rather than 2017,” the report states, noting that more than 550,000 units are under construction in the U.S.
The report, “Multifamily Deliveries Slow as Worker Scarcity Increases Construction Times,” compiles data from more than two million apartment units built in more than 100 markets over the last decade.
In the four-year period ending with the third quarter of 2017, the increase in completion times was highest in California metros Orange County, East Los Angeles and San Jose. Construction times also lengthened in metros with huge development pipelines such as Charlotte, N.C., Miami, the western portion of Houston, Nashville, Tenn., Phoenix and Raleigh, N.C.
The full report is available for download.
Yardi Matrix is a business development and asset management tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, industrial, office and self storage property types. Email matrix@yardi.com, call 480-663-1149 or visit yardimatrix.com to learn more.
About Yardi
Yardi develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. Established in 1984, Yardi is based in Santa Barbara, Calif., and serves clients worldwide. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.
