Government Backlogs Delay Apartment Construction
Date Posted: May 10, 2022
Posted In: COVID-19 UPDATES, News, Projects,
From ConstructionDive: During the COVID-19 pandemic, Americans began to work remotely. Others left their jobs altogether. And many migrated to the Sun Belt, sparking a development boom.
These trends have converged to create problems in short-staffed zoning and planning offices around the country. Apartment developers say that backlogs at the local government level are presenting an obstacle to getting projects out of the ground on time.
The situation has forced both builders and municipalities to adjust. Governments are relying on outsourcing and investing in technology, while developers may need to readjust their priorities.
“Real estate demand and real estate development went through the roof in the middle of the pandemic,” said Seth Wise, co-CEO of Boca Raton, Florida-based apartment developer and owner of The Altman Cos. “So at a time when they’re having challenges with their labor force, we, as developers, are growing our volumes.”
A labor issue
County governments around the country have seen employees leave throughout the pandemic even as apartment starts soared. Overall, local governments have lost 1.4 million workers overall since March 2020, according to BLS. Currently, they are still 600,000 jobs short compared to pre-pandemic levels, according to Teryn Zmuda, chief research officer and chief economist at the National Association of Counties.