The number of permit applications to build multifamily housing has slumped in two-thirds of U.S. cities, in some cases to levels not seen since the pandemic began, according to a new report from Redfin.
“Developers obtained permits to build 12.4 multifamily housing units for every 10,000 people in the U.S. over the past year. That’s down 27.1% from 17 units per 10,000 people during the pandemic building boom, and down 5.5% from 13.1 units in the years leading up to the pandemic,” the report stated. The data covers buildings with five or more units.
The report supports a February study by the National Association of Home Builders, which found that even though multifamily construction was continuing, new starts fell 25% in 2024 and were likely to fall another 11% in 2025.
Recommended For You
Still, some markets, especially in the South, remain a challenge. Redfin said rents are now flattening and leasing is at the slowest pace on record. In addition, high borrowing costs are making building new units less attractive and prohibitively expensive.
“At some point in the next year, the slowdown in building will mean that renters have fewer options—potentially leading to an increase in rents,” said Redfin Senior Economist Sheharyar Bokhari.
However, demand for multifamily permits remains strong in some areas. For example, Austin, TX granted permits to build 64.5 multifamily units for every 10,000 people over the past year. While that's fewer than the 94.5 units per 10,000 during the pandemic — it's the highest among the 78 U.S. metros Redfin analyzed in its new study.
In contrast, Cape Coral, FL, issued permits for 59.6 units per 10,000 people – well above the 35.5-unit level during the pandemic. Other metros with a high number of units permitted were North Port, FL, Raleigh, NC and Orlando, FL.
However, almost two-thirds of major metros have issued fewer multifamily permits since the pandemic. The biggest drop was in Stockton, CA, which issued no permits in the past year, followed by Bakersfield, CA, El Paso, TX, Providence, RI, and Baton Rouge, LA.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
