Redfin: Multifamily housing permits fall from pandemic highs

Permits for new multifamily housing construction have declined from the pace set during the COVID-19 pandemic, according to a Redfin analysis of U.S. Census Bureau data.

Developers secured an average of 12.8 permits for buildings with at least five units per 10,000 people from July 2024 through June 2025.

That is down 23.1% from the 16.7-unit average during the pandemic-era building boom from 2020 to 2023, and 1.1% below the 13-unit average from 2014 to 2020.

The surge in building during the pandemic was driven in part by Americans relocating under remote work policies, particularly to high-demand Sun Belt states such as Texas and Florida.

Builders increased activity in response, with multifamily completions reaching a 50-year high in 2024.

The increase in supply pushed rents lower as landlords sought tenants. Falling rents and high borrowing costs have since slowed construction activity.

Rents have been flat or falling for most of the past two years, but the median asking rent rose 1.7% in July from a year earlier.

“Asking rents may now be ticking up because the pool of new apartments renters have to choose from is shrinking while demand for rentals is growing,” said Redfin Senior Economist Sheharyar Bokhari. “Renters could see perks like free parking start to disappear if the balance of power shifts further toward landlords.”

While many Sun Belt cities have seen permitting slow since the pandemic, the region still outpaces others in new housing development. The steepest declines in permitting have occurred in the West.

North Port, Fla., Austin, Texas, lead in permits

North Port, Fla., issued permits for 65 multifamily units per 10,000 residents in the past year — the highest among the 78 U.S. metro areas analyzed by Redfin with populations over 750,000.

Austin, Texas, ranked second at 63.6 units. Cape Coral, Fla., matched Austin’s rate, followed by Raleigh, N.C. (43.7) and Columbus, Ohio (42).

At the other end, Stockton, Calif., recorded no multifamily permits in the past year. Bakersfield, Calif., followed with 0.9 units per 10,000 people, then El Paso, Texas (1.6), New Orleans (2.7) and Providence, R.I. (2.7).

Most metros show post-pandemic slowdown

Fifty-nine percent of the metros studied saw a decrease in multifamily permits compared with the pandemic period.

Stockton’s permitting fell 100%, followed by San Jose, Calif. (-74.5%), Colorado Springs, Colo. (-68.1%), Rochester, N.Y. (-62.7%) and Philadelphia (-62.1%).

Oklahoma City, Okla., had the largest increase at 205%, followed by Providence (150%), Pittsburgh (131%), Cape Coral (126%) and Hartford, Conn. (123%).