U.S. apartment building permits dropped 30% in 2024 since pandemic

Posted on July 18, 2024   |  

This year, builders in the U.S. have obtained permits for 13 multifamily housing units per 10,000 people, down nearly 30% from an average of 18 units during 2021-2023.

Multifamily building permits and starts have dropped significantly, falling below their 10-year average.

The number of completed units remains high because many projects started during the pandemic are now being finished.

The surplus of new units has increased competition among property owners for tenants, limiting rent price growth.

Asking rents have risen by less than 1% from a year ago, compared to an 18% increase during the pandemic.

Despite slower growth, asking rents are at their highest level since 2022.