Permits to build apartments have fallen 23% since the pandemic construction boom. According to a new report from Redfin, developers obtained permits to build an average 12.8 multifamily units for every 10,000 people in the United States between July 2024 and June 2025.
Redfin analyzed U.S. Census Bureau data covering building permits for multifamily housing with five or more units. Permits issued between July 2024 and June 2025 fell 23.1% from the pandemic building average of 16.7 units per 10,000 people, as well as down 1.1% from an average of 13 units per 10,000 people in the years leading up the pandemic.
The ramp-up of building activity during the pandemic resulted in peak deliveries last year, causing rents to decelerate. That combined with higher borrowing costs have made building less attractive and feasible. However, according to Redfin, while rents have been falling or flat for much of the past two years, the median year-over-year asking rent increased 1.7% in July.
“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 multifamily construction has slowed in many Sun Belt markets, the region continues to build more units than other parts of the country.
Out of the 78 metros Redfin analyzed with populations of at least 750,000, North Port, Florida, granted permits to build 65 units for every 10,000 people over the past year. Austin, Texas, and Cape Coral, Florida, closely follow with permits to build 63.6 multifamily units for every 10,000 people. Raleigh, North Carolina, and Columbus, Ohio, round out the top five with 43.7 and 42 units per 10,000 people, respectively.
Over half of the metros analyzed saw a drop in multifamily construction permits since the pandemic. Stockton, California, was at the bottom of Redfin’s list, recording zero multifamily permits in the last year. Similarly, Bakersfield, California, only saw 0.9 units per 10,000 people permitted. El Paso, Texas, follows with 1.6 units per 10,000 people, while New Orleans and Providence, Rhode Island, recorded 2.7 units per 10,000 people.
