- Almost half of the 100 biggest US metros saw higher multifamily permits in early 2025, reversing the slowdowns of 2023 and 2024.
- North Port and Cape Coral in Florida led the nation in permits per person, boosted by strong population growth and demand from renters.
- Des Moines, Baton Rouge, and Knoxville posted the fastest growth in permits, each with triple-digit gains.
A Rebound After Two Down Years
According to Globe St, multifamily construction is showing signs of balance in 2025. Data from Arbor Realty Trust and Chandan Economics shows that nearly half of large metros had more permits in the first six months of 2025 compared to the same time in 2024.
Florida Leads the Way
Florida metros are at the front of the trend. North Port issued 31.4 multifamily permits per 10,000 residents through June, while Cape Coral followed with 29.7. Both cities are growing at twice the national average of 1% a year.
Even with a housing price drop in the region, rental demand is strong. Higher mortgage rates and weaker home sales are keeping more people in the rental market.
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Other Strong Markets
- Columbus, Ohio ranked third in the nation, helped by steady jobs and expected growth from its new semiconductor plants.
- Orlando, Florida, and Richmond, Virginia, also placed in the top five, thanks to easier zoning rules and strong demand.
Fastest-Growing Metros
Several smaller metros had the sharpest increases in permits:
- Des Moines, Iowa: Issued 1,576 permits so far this year, up from 187 last year — a 743% jump. The gain is tied to population growth and high rental demand.
- Baton Rouge, Louisiana: Permits rose 405% year over year. Growth is less about new residents and more about high insurance costs, mortgage rates, and a need for newer, storm-safe housing and student rentals.
- Knoxville, Tennessee: Up 305%, with both rental and for-sale housing expected to face more pricing pressure from demand.
Why It Matters
The rise in multifamily permits shows that rental housing demand remains solid. Some markets are driven by fast population growth, while others see more renters due to the high cost of owning a home. With builders getting back to work, 2025 may be the start of a turnaround for multifamily supply.
