Developers obtained permits to build an average of 12.8 multifamily housing units for every 10,000 people over the past year, according to a new report from Redfin. This is down by 23.1% from an average of 16.7 during the pandemic building boom, and it is also down by 1.1% from an average of 13 in the pre-pandemic years.
Among the 78 metro areas analyzed for this data report, North Port in Florida granted permits to build 65 multifamily units for every 10,000 people over the past year, the highest in the nation. The Texas capital of Austin ranked second with 63.6 multifamily units for every 10,000 people, followed in the top five by Cape Coral, Florida (also 63.6), Raleigh, North Carolina (43.7), and Columbus, Ohio (42).
At the other end of the spectrum is Stockton, California, which recorded zero multifamily permits in the past year. The metro with the second-fewest permits was Bakersfield, California (0.9 units per 10,000 people), followed by El Paso, Texas (1.6), New Orleans (2.7), and Providence, Rhode Island (2.7).
But while fewer multifamily permits are being issued, the median asking rent in the nation’s apartment complexes is up by 1.7% year-over-year ($30) to $1,790 in July, which is the largest increase since January 2023.
San Jose led the nation with the greatest median asking rent increase – 8.8% year-over-year in July to $3,569. Only seven of the metros Redfin analyzed in this report saw asking rents fall, most notably in Jacksonville, Florida (-3.5%) and Austin (2.6%).
“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.”
