Multifamily Surge Signals Major Shift: What Contractors Must Know About the Q1 2025 Building Boom
Executive Brief
The Gist: Multifamily construction starts hit their highest point in 2025 during December, signaling renewed developer confidence despite year-over-year declines.
- The Trap: Contractors chasing multifamily work without understanding the 18-24 month payment cycles and spec change nightmares that come with apartment projects.
- The Play: Position now for the HVAC retrofit and tenant improvement wave that follows 12-18 months after groundbreaking—that’s where the real margin lives.
Why This Matters
Here’s what the headlines won’t tell you: When multifamily starts spike in December, it means developers are betting big on 2026-2027 rental demand. But for contractors, the real money isn’t in the ground-up construction—it’s in the follow-on work.
The smart play? Track these projects religiously. When a 200-unit apartment complex breaks ground today, that’s 200 future service calls, 200 potential kitchen upgrades, and 200 HVAC replacement opportunities in 3-5 years when the first wave of tenants moves out and units need refreshing.
The year-over-year decline (still down from December 2024) tells us developers are being selective. Translation: They’re building in strong markets only. If multifamily is surging in your area, that’s a leading indicator of population growth and rising household formation. Those same people will need single-family remodels, emergency plumbing, and HVAC service.
The veteran move: Build relationships with property management companies NOW. Offer maintenance contracts before the buildings even open. A $500/month retainer for 200 units ($100K annually) beats chasing one-off service calls. Most contractors miss this because they’re too focused on the sexy new construction contracts that tie up cash flow for months.
Contractor FAQ
Q: Should I pivot my business to chase multifamily construction work right now?
A: No—unless you have 6+ months of operating capital and enjoy waiting 90+ days for payment, focus instead on building service relationships with property managers for the inevitable maintenance wave.
Q: What’s the financial impact on my residential remodeling business?
A: Positive—multifamily growth signals strong local economics, meaning your residential clients have more equity and confidence to spend on bathroom remodels and home upgrades; raise your estimates 8-12% now before material costs follow the construction surge.
Q: How do I track which multifamily projects are breaking ground in my market?
A: Subscribe to your city’s building permit database (usually free), set Google Alerts for “[Your City] apartment construction,” and drive past commercial zones monthly—then cold-call the general contractors with maintenance proposals before their buildings open.
Q: What’s the hidden cost most contractors miss when bidding multifamily work?
A: Change order chaos—apartment developers change specs constantly during construction, and if your contract doesn’t include a rock-solid change order process with 50% upfront payment, you’ll bleed profit on “small adjustments” that add up to thousands in unbilled labor.
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Author: Mike Warner
About the Founder Kore Komfort Solutions is an Army veteran-owned digital platform led by a 30-year veteran of the construction and remodeling trades. After three decades of swinging hammers and managing crews across the United States, I’ve shifted my focus from the job site to the back office. Our New Mission: To help residential contractors move from "chaos" to "profit." We provide honest, field-tested software reviews, operational playbooks, and insights into the AI revolution—empowering the next generation of trade business owners to build companies that last.