While the multifamily property sector fared better than expected in 2020, economists at the National Association of Home Builders (NAHB) anticipate regulatory issues, supply-side challenges, slowing rent growth and rising vacancy rates will weaken construction in the sector in 2021. Multifamily development should stabilize in 2022, according to analysis by Robert Dietz, chief economist for NAHB, and Danushka Nanayakkara-Skillington, assistant vice president of forecasting and analysis for NAHB. Both economists presented their findings at the 2021 NAHB virtual International Builders’ Show.
“Though the multifamily sector is performing much better than nonresidential construction, developers are facing stiff headwinds in 2021,” said 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.”
Generally, employment met
