Permit-to-Completion Times in Multifamily Buildings Increased Significantly in 2022

According to the US Census Bureau’s Survey of Construction, with additional analysis provided by the National Association of Home Builders (NAHB), the average length of time to complete construction of a multifamily building, after receiving authorization, was 19.8 months. The permit-to-completion time in 2022 was 2.3 months longer than in 2021, as supply-chain issues and the ongoing skilled labor shortage challenged the industry.

The average time to build multifamily homes varies with the number of units in the building (the more units, the more time required to build). In 2022, buildings with 20+ units took the longest time, approximately 22.5 months, from permit authorization to completion. Properties with 10–19 units required 19.5 months; 5–9-unit buildings were completed in 18.8 months; and 2–4-unit buildings took the least amount of time, needing 18.7 months to complete.

Regional variations also impacted the average construction time of multifamily buildings. According to the 2022 data, the Northeast had the longest construction time from authorization to completion: 23.7 months. That was followed by the West at 19.5 months and the South at 18.9 months. The Midwest had the shortest permit-to-completion time period at 18.4 months.