Not every rebound is a signal to celebrate. When I hear that the U.S. multifamily market is bouncing back in early 2025, my first reaction isn’t excitement—it’s caution. I’ve watched this industry cycle through booms and busts, and this time, I’m asking: Are we building too fast to build well?
Why This Housing Rebound Feels Different for New Construction Buyers
According to data from the National Association of Home Builders (NAHB) and recent coverage by industry sources like HousingWire (May 2025), multifamily construction starts surged in Q1 2025. Rising 12% year-over-year, this marks the first consistent upward trend since the 2023 slowdown. Developers are responding to softening interest rates and the persistent demand for rentals, especially in high-growth metros like Phoenix, Dallas, and Atlanta. But behind this growth lies a critical issue: speed may be coming at the cost of quality.
What This Means for Buyers: Key Takeaways
1. Speed Is Driving Down Construction Quality
It’s simple math: when builders are racing the clock to meet investor deadlines and manage costs, quality tends to suffer. According to the NAHB’s 2024 Cost of Construction Survey, construction expenses now account for over 64% of a new home’s price—up from 60.8% in 2022. Builders are trimming wherever possible, and unfortunately, that sometimes means skipping best practices.Real estate pros and inspectors are seeing it firsthand. From improperly sealed windows to misaligned HVAC systems, the issues aren’t minor—and they’re increasingly common in new builds.
2. Code Inspections Aren’t Enough
Buyers often assume that a builder’s inspection or local code enforcement is sufficient. It’s not. Those inspections ensure a home meets minimum safety requirements—not that it’s well-built or efficient. Independent home inspectors report that 65% of new builds they assess still have issues, with nearly a quarter failing the first inspection outright (NAR, 2024). That fresh paint might cover up poor workmanship, and without an outside expert, you may not notice until it’s too late.
3. Builders May Not Welcome Oversight
Worried about third-party inspections? So are some builders—especially the ones cutting corners. Home inspectors report increasing pushback, from banning drones to disallowing flashlights during inspections. This kind of resistance should raise red flags. A quality builder has nothing to hide. As an investor or buyer, that’s your cue to dig deeper—and not just trust the model home.
4. The Warranty Window Is Shorter Than You Think
Yes, most new homes come with a 12-month warranty, and some extend coverage on systems for up to two years. But timing is everything. If you uncover a problem after the clock runs out—even if it was there from day one—it’s likely on your dime. That’s why inspections during each phase of construction are crucial, not just at the end.
What Should You Do Next? Smart Moves for Buyers and Investors
1. Schedule Inspections at Every Phase
For new construction, insist on a three-phase inspection: pre-foundation, pre-drywall, and final walk-through. This gives you leverage with your builder before everything is sealed behind drywall or landscaping.
2. Vet Your Inspector, Not Just Your Builder
Use platforms like the American Society of Home Inspectors or InterNACHI to find qualified pros. Avoid inspectors suggested by the builder—they may be less independent than you think.
3. Show Up and Speak Up
Attend inspections (or have your agent do it). You’ll learn about your home, and you’ll be better positioned to request repairs backed by documentation.
4. Document Everything—and Start Warranty Claims Early
Don’t wait until month 11 to report issues. If there’s a delay in processing your claim, you could miss the window and lose coverage.
What Is a Phased New Construction Inspection—and Why Does It Matter?
A phased inspection breaks the inspection process into three stages—pre-foundation, pre-drywall, and final. It allows an inspector to catch structural and mechanical issues as the home is built, not just after it’s finished. This helps ensure major systems like plumbing and electrical are installed correctly before they’re hidden from view.
A Quiet but Critical Tool
There’s no glamour in a home inspection—but it’s one of the smartest investments you can make in your newly built home. Tools like digital inspection platforms or real-time report sharing apps (many used by firms like Pillar To Post) can streamline communication between inspectors, agents, and buyers, helping you act quickly before small issues become expensive problems.
Reader Q&A
Can I negotiate repairs even if the home is new?
Yes. Most builders allow for repair requests based on inspection findings, especially if issues violate code or manufacturer guidelines.
Should I still get an inspection if my builder offers a warranty?
Absolutely. Warranties are limited, and problems found early are easier—and cheaper—to fix.
Are inspections more expensive for new construction?
They can be, because they involve multiple site visits. Expect to pay around $450–$600 total for a full-phase inspection series, depending on location and home size.
Bottom Line: A market rebound is good news—but don’t let optimism cloud your judgment. As homes go up faster and pressure mounts on builders, quality control is your job now. Protect your investment by slowing down, inspecting thoroughly, and insisting on transparency