BiggerPockets Daily Multifamily Permits Drop, But These Markets are Still Growing
6 snips
Sep 17, 2025 Multifamily construction is experiencing a significant slowdown, with permits dropping 23% nationwide. This shift is projected to favor landlords as slower completions lead to rising rents. The conversation highlights robust growth in Sun Belt regions like North Port and Austin, contrasting with declines in cities like Stockton and San Jose. Insights into landlord leverage and market dynamics provide a roadmap for investors looking to navigate this evolving landscape.
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Permitting Pullback After Pandemic Boom
- Multifamily permits fell to 12.8 units per 10,000 people, a 23% drop from the pandemic boom peak.
- Reduced permitting plus high borrowing costs cooled construction despite record completions in 2024.
Sun Belt Boom Led Completions Spike
- The pandemic remote-work migration drove a Sun Belt rental surge and a 50-year high in completions in 2024.
- Oversupply plus high rates have now significantly cooled new construction activity.
Shrinking Pipeline Is Lifting Rents
- Rents rose 1.7% year-over-year last month as the pipeline of new apartments shrinks.
- Slower supply creation lets demand catch up and gives landlords renewed price power.