After a banner year for building multifamily housing in 2022, new starts are drying up in large part due to lack of financing. High interest rates and jittery lenders in the wake of bank failures tripped a “circuit breaker” limiting developers’ ability to find funding. A report from the National Multifamily Housing Council revealed that a whopping 88% of developers said they experienced construction delays over the past three months. The inability to get permits and entitlements was also a major factor. If projects don’t ramp back up and the current oversupply is not absorbed, it could trigger an undersupply, leading to higher rents and more inflation.