Multifamily Housing Faces Industry Challenges While Demand Stays High
Erick Hartzell, LEED AP, BD+C
The demand for multifamily housing is increasing due to high interest rates and the need for stability following pandemic-induced market uncertainties. However, contractors encounter several notable challenges in meeting this demand, such as a shortage of skilled labor, escalating material costs, limited financing options, and a significant backlog of similar projects.
These trends are undoubtedly influencing the future of multifamily housing. Nevertheless, the need for multifamily developments persists as more people are renting and homeowners refrain from entering the buyer’s market.
