Construction costs are rising again.
Driven by tariffs, ongoing global conflict, and rising energy costs, prices for residential building materials climbed in May at their highest rate since January 2023, up 8.3% from a year ago. For multifamily developers, this isn’t good news.
For all the benefits of FHA-insured multifamily financing, loan limits haven’t kept pace. The good news is that the 21st Century ROAD to Housing Act, a bipartisan bill now before Congress, would raise those limits, bring them in line with today’s costs, and index them to inflation.
Earlier this week, the Senate and House agreed on a path to a final vote. The President is expected to sign it by July 4.
Rising costs are a challenge, but how you finance your next project is not. Reach out to the AGM team to learn how FHA lending can work for your next multifamily project.
About AGM Financial Services, Inc.
Family-owned with over 30 years of experience, AGM has closed over $10 billion in FHA-insured multifamily project loans nationwide. We underwrite, fund, and service all of our loans. Developers and owners can count on AGM to be accessible, transparent, consistent, and ready to lend. From new construction to substantial rehabilitation to acquisition and refinance — for both market-rate and affordable projects — we can get the deal done. To learn more about AGM, call 800.729.4266 or visit agmfinancial.com.