Multifamily Starts Rise as Permits Send a Mixed Signal

Multifamily starts saw a 13.5% rise in March 2026, outpacing permits as regional activity diverged. Multifamily starts key trend emerges.

May 4, 2026

Jordan B.

Multifamily starts rose 13.5% in March, reaching a SAAR of 446,000 units.
Multifamily permitting fell 5.3% from February and 23.5% year-over-year.
Regional trends varied, with strong starts in the South and Northeast.
Builders remain cautious amid economic uncertainty and rising interest rates.

Key Takeaways

Recent Multifamily Momentum

Multifamily starts saw a notable uptick in March 2026, according to fresh US Census Bureau and HUD data reported by RealPage. Seasonally adjusted annual starts increased 13.5% from February and 9.6% year-over-year, while permitting activity lagged. The divergence between multifamily starts and permits suggests developers are pushing forward with projects approved earlier, even as new permitting slows.

National residential snapshot for March 2026 showing permits, starts, and completions by housing type. Multifamily starts increased 13.5% to 446,000 units, while permits declined 5.3%, and completions fell 9.1%, reflecting mixed construction trends.

Permitting Trends Diverge

While multifamily starts climbed, the SAAR for multifamily permitting declined by 5.3% from the prior month and 23.5% versus March 2025. The March total landed at 427,000 units. Builders continue to navigate headwinds including slower job growth and interest rate increases. Inquiries for market feasibility studies and custom analytics from developers have also softened, reflecting industry caution.

Chart showing annual multifamily (5+ unit) starts and permits from 2021 to March 2026. Multifamily starts rise in early 2026 while permitting trends decline, highlighting a divergence between construction activity and new project approvals.

Regional Variations in Starts and Permits

Regional multifamily permitting saw a steep drop in the South (down 28.9%), but permitting increased significantly in the Northeast (36.6%), West (24.9%), and Midwest (15.3%) year-over-year. This uneven pattern aligns with recent data showing shifting permitting momentum across major US metros. Starts ramped up sharply in the South (up 39.1%) and Northeast (up 27.4%), but declined in the West and Midwest. The Northeast notably saw starts double the region’s permitting rate for March.

What’s Next for Multifamily Starts

Multifamily starts showed solid growth. However, weak permitting activity and economic uncertainty may slow new supply. Industry players will track employment trends and interest rate movements closely. They also seek a clear signal on whether a sustained multifamily expansion is forming.