Affordable apartment projects face delays as construction costs soar
New affordable apartment buildings throughout Wisconsin are facing delays as developers scramble to fill funding gaps caused by double-digit construction cost increases since late 2020.
In the midst of the largest apartment construction boom in decades, developers across the nation are hitting roadblocks. The combination of soaring interest rates, tighter lending conditions, and ...
Apartment Builders Press Pause Due to High Costs, Little Funding
Good morning. Higher interest rates and flattening rents are causing widespread delays in apartment construction projects across the U.S. Plus, Manhattan office leasing levels surged 70% in May.
Distressed Projects Delayed Developers across the U.S., from Worcester to Boise, are dealing with delays and financial hurdles in their apartment construction projects . The combination of rising interest rates, escalating construction costs , and stagnant rents left many projects unviable.
Apartment Developers Face Tough Challenges Amid Rising Costs and ...
The Apartment Construction Boom and Its Challenges During what was one of the largest apartment construction booms in decades, many developers across the country have found themselves unable to start or complete projects . Higher interest rates, tighter lending conditions, and flattening rents are the main hurdles.
Higher borrowing costs have made financing new construction projects significantly more expensive, leading some companies to delay or scale back development plans. At the same time, renters across the country continue facing affordability concerns.
Rising Interest Rates, Construction Costs Stall U.S. Development Boom
High interest rates are compounding the effects of spiraling construction costs and forcing developers to scrap, significantly delay or shelve a growing share of projects across the U.S. Among those affected are apartment buildings, renewable energy projects , shopping centers, mixed-use developments and office complexes.
Residential construction projects across the U.S. are encountering significant delays and cost overruns in 2025, as ongoing supply chain disruptions continue to affect the availability of essential materials and labor. Builders are facing shortages of key construction materials such as lumber, steel, and cement, which have sharply slowed the pace of new housing developments, further ...
A Build America, Buy America law is causing construction delays amid ...
A Build America, Buy America law is causing construction delays amid the US housing crisis Schematics for an affordable housing project are posted Tuesday, March 17, 2026, in Biddeford, Maine. (AP Photo/Patrick Whittle)
Affordable housing developers are facing more pressure than ever to build more properties while dealing with escalating costs .