Over the 12 months ending March 2025, developers obtained permits to build 12.4 multifamily units per 10,000 people nationwide. That figure is down 27.1 percent from the height of pandemic-era construction and 5.5 percent below the pre-pandemic average.
The findings, based on U.S. Census Bureau data and released by Redfin on May 2, highlight a shift in the housing market following a construction boom fueled by remote work and migration to Sun Belt cities. Nearly two-thirds—63 percent—of the 78 major metropolitan areas analyzed have issued fewer permits than during the pandemic years.
“New apartments are being rented out at the slowest speed on record and builders are pumping the brakes because elevated interest rates are making many projects prohibitively expensive,” Redfin Senior Economist Sheharyar Bokhari said in a statement. “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.”
Sun Belt cities continue to lead in permitting new multifamily housing despite broader national declines. Austin, Texas, topped all metros with 64.5 permits per 10,000 people over the past year, followed by Cape Coral and North Port, Florida, with 59.6 and 53.3 permits, respectively. Raleigh, North Carolina, and Orlando, Florida, rounded out the top five with 41.1 and 40.7 per 100,000 people, respectively.
Meanwhile, some regions saw little or no new multifamily construction. Stockton, California, issued no permits for multifamily units during the period analyzed. Bakersfield, California, El Paso, Texas, Providence, Rhode Island, and Baton Rouge, Louisiana, also reported very low permitting rates, all under two units per 10,000 people.
The data reflect changing incentives for developers, Redfin said. While demand for rentals surged in recent years, especially in fast-growing metros, high borrowing costs and flattening rents today have made many new projects financially unviable.
Some cities bucked the national trend. Oklahoma City saw the biggest increase in permitting activity, rising 193 percent from its pandemic-era average. Other metros with notable growth include Pittsburgh, Hartford, Baton Rouge, and Milwaukee. Still, even with those gains, all five remain below the current national average in permits per capita.
The report measured multifamily permits for buildings with five or more units and compared the most recent 12-month period (April 2024–March 2025) to averages from the pandemic years (2020–2023) and pre-pandemic period (2014–2020).
Redfin said that as construction slowdown continues, economists and housing advocates will be watching closely for its effects on rental supply and affordability, particularly in cities where new building has come to a near halt.
