Multifamily Construction Timeline Hits Record 25-Month High

Over the past nine years, the time it takes to construct a multifamily building increased from 18 months to just over two years, compounded by supply chain issues and work stoppages during the pandemic.

The data show a bump in completion times, particularly in the second half of 2022 and beginning of 2023. However, construction timetables also rose in 2016 and 2017, slowly gaining momentum until the start of the pandemic.

The reason for this pre-pandemic rise and the continued elevated construction schedules is related to a shift in the type of apartments being built. In 2015, 42% of completed units were in garden apartment projects. However, by the end of 2023, that percentage decreased to 23%, as more complex projects such as mid-rise and high-rise building dominated the pipeline.

Garden apartment properties are easier and quicker to develop than multistory buildings with elevators and parking structures. In Sun Belt markets where year-round construction is possible, a garden apartment property could be completed in as little as 12 months. That compares to mid-rise or high-rise developments that can take between two and three years to complete, depending on location.

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