Multifamily Construction Recovery Loses Momentum in August

Multifamily construction slowed in August as permits and starts weakened, while authorized projects increasingly remained on hold.

September 23, 2026

Valerija I.

RealPage said seasonally adjusted multifamily permits fell 3.1% in August to an annualized 467,000 units.
Seasonally adjusted multifamily starts dropped 22.5% from July and 15.5% year over year to 344,000 units.
Authorized but unstarted multifamily units rose 15.3% from a year earlier to 128,000, signaling more delayed groundbreakings.

Key Takeaways

RealPage Analytics reports in its August construction update that the multifamily development recovery is continuing, but with less momentum. Permits and starts remain above their recent lows, yet monthly activity weakened and completions continued to fall. The growing number of authorized projects that have not started also points to developers delaying execution under challenging conditions.

The Details

The current slowdown follows a much larger construction cycle. RealPage said seasonally adjusted multifamily permitting peaked in mid-2022, while not seasonally adjusted activity likely peaked in early 2023. Starts followed with a slight lag. Both measures then declined into late 2024 or early 2025 before beginning a gradual recovery.

Annual multifamily permits and starts show a sharp decline from 2022 peaks, followed by an uneven recovery through 2026.

RealPage said seasonally adjusted multifamily permitting declined 3.1% from July to an annualized 467,000 units in August. The figure was still 9.4% above a year earlier. On a not seasonally adjusted basis, permitting rose 0.3% during the month and 8.8% annually to 480,200 units.

Starts showed a sharper slowdown. RealPage reported seasonally adjusted annualized multifamily starts at 344,000 units. That was down 22.5% from July and 15.5% from August 2025. The not seasonally adjusted total was more stable at 422,400 units. It fell 1.4% for the month but remained 12.3% above a year earlier.

RealPage noted that seasonally adjusted figures are annualized and designed to show forward trends. Not seasonally adjusted totals instead reflect accumulated monthly activity, making them a useful check on short-term volatility.

Pipeline Indicators Soften

Completions continued to move lower as the earlier construction wave worked through the pipeline. RealPage put the seasonally adjusted multifamily completion rate at 302,000 units, down 15.9% from July and 35.7% year over year. Units under construction fell 0.3% for the month and 2.5% annually to 666,000.

Meanwhile, authorized but unstarted multifamily units increased 0.8% from July and 15.3% from a year earlier to 128,000. RealPage said the increase suggests some developers are postponing groundbreakings. That delay is consistent with a recovery that remains positive on a year-over-year basis but has lost the double-digit momentum recorded earlier in 2026.

Why It Matters

Regional data show that the slowdown is not uniform. RealPage reported annual multifamily permitting gains in all four regions. The Northeast led with a 20.9% increase to 64,000 units, followed by a 13.2% gain in the South to 206,000. The West rose 1.5% to 132,000, while the Midwest increased 4.8% to 66,000.

August 2026 multifamily permits rose 9.4% annually, while starts fell 15.5% and completions dropped 35.7%.

Starts diverged more sharply. RealPage said annualized multifamily starts rose 54.5% in the Northeast to 47,000 units and 1.2% in the West to 122,000. The Midwest fell 40.7% to 52,000, while the South declined 26.9% to 124,000. Recent multifamily starts and permit data have repeatedly shown a recovery with uneven regional timing.

Monthly patterns were mixed within those regions. RealPage said permits fell from July in the Northeast and Midwest, increased in the West and were nearly unchanged in the South. Starts rose strongly in the West during the month but declined across the other three regions.

What’s Next

The backlog of authorized but unstarted projects is the clearest near-term indicator to watch. If more permits convert into starts, the development recovery can keep advancing despite weaker monthly readings. If delays persist, the pipeline could thin further after completions from the prior cycle continue to roll off.

RealPage also noted that elevated mortgage rates and construction costs remain headwinds in the broader housing market. For multifamily developers, August reinforces a mixed picture: year-over-year activity is still positive, but the pace of improvement has slowed materially.

Single-family data provided a useful contrast in August. RealPage said seasonally adjusted single-family permits fell 1.8% from July to 878,000 units, while starts rose 7.6% for the month to 918,000. Single-family completions fell 10.4% from July to 816,000, reinforcing the broader picture of uneven residential construction activity.