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Developers report fewer apartment projects amid rising costs

In the NMHC survey, 29.0% of respondents said they started fewer projects than three months ago, while 65.0% of those citing reductions pointed to economic uncertainty or project issues.

Reported · Written up by our desk · Residential

The National Multifamily Housing Council said its Quarterly Survey of Apartment Construction and Development Activity for the third quarter of 2026 shows a challenging environment for apartment development, driven by increasing construction costs, economic uncertainty, and low rent growth, according to ConnectCRE.

ConnectCRE reported that fewer projects are breaking ground even as developers remain optimistic about overall conditions over the next 6 to 12 months. In the survey, 29.0% of respondents said they started fewer projects than three months ago, up from 20.0% in June.

ConnectCRE also said 24.0% reported their firm started more projects, and among respondents who started fewer projects, 65.0% attributed the pullback to economic uncertainty or project-related issues.

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