Building Permits for Apartments Declined Nearly 30 Percent Since Pandemic: Report

Persistently high interest rates are restricting the ability of businesses to borrow money to invest in real estate construction.

A home is listed 'For Sale' in New York City on March 31, 2021. Spencer Platt/Getty Images

Fewer builders are seeking permits for multifamily housing units or apartments as many remain concerned about high interest rates and new supply hitting the market, according to real estate brokerage Redfin.

Redfin analyzed data from January through May of this year and compared it to the same five-month span in 2021, 2022, and 2023.