The National Multifamily Housing Council (NMHC) released its March 2026 quarterly survey of apartment construction and development activity, indicating early signs of stabilization in the multifamily construction market following three years of declining starts.

Survey responses, collected from 42 developers between March 4 and March 18, suggest that project activity is no longer contracting at the pace seen in prior periods. Approximately 31% of respondents reported an increase in project starts compared to three months earlier, while 48% indicated no change and 12% reported a decrease. This distribution points to a market that is transitioning from contraction toward a more stable baseline.

Construction timelines also appear to be improving modestly. 31% of developers reported fewer delays, while only 2% experienced an increase. The majority (60%) indicated that delays remained unchanged, suggesting that scheduling pressures have eased but not fully normalized.

On the cost side, both labor and materials are largely tracking inflation. A majority of respondents (69%) indicated that labor costs are rising in line with inflation, with only a small portion reporting accelerated increases. Material costs show a similar pattern, with 62% of respondents indicating inflation-aligned increases and a minority reporting either faster growth or declines.

Notably, some of the observed cost stability may be tied to reduced construction activity levels. According to NMHC’s chief economist, lower demand for new development has likely eased pressure on labor and supply chains. However, this dynamic may reverse if project starts increase meaningfully, particularly given ongoing constraints in the construction labor pool.

Looking ahead, developer sentiment is cautiously optimistic. While 81% of respondents expect conditions to remain stable over the next three months, 68% anticipate improvement over a 6–12 month horizon. This outlook appears to be influenced in part by expectations of improved capital availability.

Nearly 70% of respondents expect equity financing conditions to improve within the next year, while 37% anticipate some easing in debt markets. The divergence between equity and debt expectations highlights a continued imbalance in the capital stack, where access to financing remains uneven.

Cost expectations remain relatively stable in the near term. Most respondents anticipate that construction costs will either grow in line with inflation or moderate. Over a longer horizon, however, expectations are more mixed, with some anticipating renewed cost pressures as activity levels increase.