As we look towards 2023, we look at trends in residential construction. Although single-family housing has seen declines "over the past 12 months, according to the latest findings from the National Association of Home Builders (NAHB) Home Building Geography Index (HBGI) for Q3 2022.multi-family housing continues to flourish, especially in suburban markets."
In part, this trend is being driven by the desire to live in live, work, and play type communities that are convenient to retail and dining metroplexes. Residents are seeking greater convenience that do not require maintenance and upkeep.
Unlike single family developments, multi-family projects are much more difficult to stop once they get started as they require more long range planning and development. There are also financial considerations. “Decisions we are making today aren’t necessarily affecting our 2022 and 2023 builds, they are affecting 2024 and 2025 projects,” according to Procopio. “We may have projects slated for 2023 that have partners and funding all teed up and ready to go, and we are forced to look at issues around interest reserves due to rates running, but there remains a potential path to get a project going.”
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