When Projects Slow Down, Preconstruction Matters More
Ryan Residential Contractors •
When Projects Slow Down, Preconstruction Matters More
The development environment remains challenging for new rental housing projects.
Financing costs, construction costs, rent growth, and equity requirements continue to affect which projects move forward and which remain in planning. National multifamily construction starts have slowed substantially, even as renter demand remains relatively resilient and the existing construction pipeline continues to work its way toward completion.
Build-to-rent is seeing a similar dynamic. As of August 2026, nearly 60,000 BTR units were under construction nationally, but projected deliveries decline considerably beyond the current pipeline.
For developers with projects that are not quite ready to start, that creates an important question:
What should happen while the project is waiting?
From a construction standpoint, this can be one of the most valuable periods of the development process.
A Delayed Start Does Not Have to Mean a Dormant Project
When financing or market conditions delay a start, it can be tempting to put construction planning on hold as well
But the opposite approach can leave a project in a stronger position.
The preconstruction period gives the development and construction teams an opportunity to work through decisions that become much harder and more expensive once work begins.
That can include:
- Reviewing plans for constructability
- Comparing building systems and material options
- Identifying potential scope gaps
- Evaluating subcontractor availability
- Reviewing site logistics and phasing
- Identifying long-lead materials and equipment
- Refining sequencing and preliminary schedules
- Updating pricing as the design progresses
None of these activities guarantees that a project will proceed. What they can do is reduce the number of unanswered construction questions when the project is ready to move.
Pricing Is More Useful When It Informs Decisions
A construction budget should be more than a number attached to a set of drawings.
Good preconstruction pricing helps the development team understand why the project costs what it does and where there may be opportunities to improve the plan.
For example, the team may identify a building detail that is difficult to execute, a material specification that creates unnecessary cost, or a site condition that could affect sequencing.
Finding those issues during preconstruction gives the team options.
Finding them after construction begins usually gives the team fewer options.
That distinction becomes especially important when projects have limited contingency or when underwriting leaves little room for construction surprises.
Constructability Should Start Before the Drawings Are Finished
Waiting for a completed construction set before bringing the builder into the conversation can limit the impact that construction input can have.
Earlier involvement allows the construction team to review decisions while they can still be changed efficiently.
That does not mean redesigning the project around the contractor.
It means bringing construction experience into the design process early enough to identify practical issues before they reach the field.
On BTR and multifamily projects, those conversations can involve building repetition, site circulation, utility coordination, unit layouts, structural systems, exterior details, material selections, amenity areas, and the sequence in which the community will ultimately be built and turned over.
The earlier those issues are understood, the easier it is for the development team to make informed decisions.
The Schedule Starts Before Mobilization
A project schedule is not only about how quickly buildings can be constructed.
Procurement, permitting, sitework, utilities, subcontractor capacity, material lead times, inspections, turnover strategy, and leasing priorities can all influence the sequence.
That is especially true for large residential communities where portions of the project may need to be completed and turned over while construction continues elsewhere on the site.
Thinking through that sequence during preconstruction helps align the construction plan with the developer's broader business plan.
The goal is not simply to establish a completion date.
It is to understand how the project gets there.
Being Ready Matters When the Market Changes
The current slowdown in construction starts will not last forever.
The multifamily pipeline is already contracting as fewer projects enter construction, while research continues to show rental demand absorbing existing supply.
When conditions improve enough for more projects to move forward, some developments will be significantly better prepared than others.
Projects with current pricing, coordinated plans, identified procurement risks, realistic schedules, and a construction team already familiar with the development can have fewer issues left to resolve before a start.
That is why preconstruction should not be viewed simply as the period before construction.
It is where many of the decisions that determine construction performance are made.
For developers navigating today's market, using that time well can be just as important as what happens after the first shovel hits the ground.
