Labor Shortages, High Price of Materials Lead to Apartment Construction Delays

According to Axiometrics there will be an increase in apartment construction delays compared to last year, and two contributors are labor shortages and the high price of materials. From the Triad Business Journal:

Labor shortages in the construction industry, coupled with the high cost of building materials, has delayed more than 56,000 apartments in the United States.

The sheer volume of apartments sliding from a 2017 completion to next year has to do with the number of apartments under construction in the United States, said Jay Denton, vice president of Axiometrics, which was recently acquired by Richardson-based RealPage Inc. (Nasdaq: RP).

“If we use last year’s numbers as a guide, the supply has increased with more units under construction, but it’s taking longer for each unit to be delivered,” Denton told the Dallas Business Journal.

“It’s the same percentage of units pushed into next year, and those units are still on their way to being delivered in January or later on in 2018,” he added.