U.S. Multifamily Permits Down Nearly 30% from Pandemic Levels

Article originally posted on HERE on July 15, 2024

Builders obtained permits to construct 13 multifamily housing units for every 10,000 people in the U.S. year to date, down nearly 30% from an average of 18 during the same periods in 2021-2023, immediately following the pandemic. That’s according to a new report from Redfin, which analyzed Census Bureau data on properties with five or more units.

Multifamily building permits have dwindled not because they’re harder to get, but because builders are seeking fewer of them, Redfin said. For one thing, elevated interest rates have made borrowing for construction projects more expensive; for another, there’s already a near-record number of new multifamily units hitting the market due to a building boom in recent years, making it difficult for some property owners to find tenants.

In Cape Coral, FL, builders got permits to construct 27 multifamily units per 10,000 people this year, the highest level among the 79 metros Redfin analyzed. Next came Austin, TX (21 per 10,000 people), Greensboro, NC (20), North Port, FL (18), Omaha, NE (17), Nashville, TN (15), Tampa, FL (14), Orlando, FL (13), Dallas (13) and Columbus, OH (12).

The two metros with the fewest multifamily permits per 10,000 people are in California. In Stockton and Bakersfield, no permits were issued in the first five months of the year. They’re followed by Providence, RI (also 0), El Paso, TX (1), Baton Rouge, LA (1), Cleveland (1), Fresno, CA (1), Detroit (1), Dayton, OH (1) and New Orleans (1).