High financing and construction costs, combined with significant delays from the Building Safety Act, meant multifamily build-to-rent completions saw a 28% y/y decline in 2025. A thin pipeline, increased costs from the Iran war and uncertainty over rent controls imply completions will remain subdued this year and next but, beyond that, the future is brighter. Improvements to the Building Safety Regulator are now cutting the time it takes to get construction approval, and with residential returns set to outperform other sectors that should encourage developers to break more ground and boost completions from 2028.
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