Multifamily Permits Rise as Fewer Projects Move Ahead

Apartment permitting grew through July even as single-family activity weakened across most regions, GlobeSt reported. The July permitting analysis shows multifamily unit approvals rising while the number of permitted projects declined.

The Details

Census Bureau data reviewed by the National Association of Home Builders showed permits for units in buildings with at least five apartments rising 7.9% year over year.

Builders received permits for 274,607 multifamily units from January through July. That compared with 254,514 units during the same period in 2025.

However, permits for multifamily structures with at least five units fell 5.8% to 9,523 from 10,111. More units therefore moved forward through a smaller number of permitted projects.

Single-family permitting moved the other way. Builders received 546,826 single-unit permits through July, down from 565,208 during the first seven months of 2025.

Regional Permitting Splits

The Northeast recorded the fastest multifamily growth. Permits rose 42.2% to 45,381 units from 31,907 a year earlier, according to the NAHB review.

The West increased 18.5% to 68,212 units, while the Midwest grew 4.2% to 44,344. The South was the only region to decline.

Southern multifamily permits fell 4.8% to 116,670 units. Even after the decline, the South remained the country’s largest multifamily region by permitted unit count.

Single-family permits declined in the Northeast, South, and West. The Midwest was the only region with growth, rising 1.1% to 74,922 permits.

Single-family permits fell 9.6% in the Northeast to 31,095 and 2.6% in the South to 328,144. The West declined 6.1% to 112,665.

Those regional declines contrast with the multifamily increase in the Northeast and West. The data therefore shows housing development splitting by both geography and product type.

Texas and Florida Pull Back

State data also shows a sharp divide. Thirty states and Washington, D.C., increased multifamily unit permits, while Alaska was unchanged and 19 states declined.

Washington, D.C., posted the largest percentage increase, rising to 1,130 units from 541. California, the second-largest multifamily permitting market, increased 25.9%.

Texas remained the largest market, but multifamily permits fell 20.5%. Florida, the third-largest market, posted a 31.2% decline.

On the single-family side, the 10 largest states accounted for 62.5% of national permits. Texas led with 87,795, down 3.1% from the prior-year period.

Single-family permitting was positive in only 20 states and Washington, D.C. Gains ranged from 0.3% in Louisiana to 69.6% in the District.

Nevada posted the largest single-family decline at 27.5%. Florida fell 2.8%, and North Carolina dropped 7.7% through July.

Those three large Sun Belt markets therefore showed weaker single-family momentum even as multifamily permitting improved nationally.

Why It Matters

The latest multifamily permitting data shows national growth masking sharp regional differences. The Northeast and West drove much of the increase while the South moved lower.

The project count is equally important for CRE investors. Rising unit permits alongside fewer structures suggests development is becoming more concentrated in larger projects.

That concentration can affect where and when new apartments reach the market. It also changes the scale of individual projects that developers, lenders, and investors must evaluate.

What’s Next

The permit mix points to a more selective apartment pipeline rather than uniform national expansion. Future supply could shift away from markets where permitting has pulled back sharply.

Texas and Florida are especially important because both remain large apartment markets despite current declines. California, the Northeast, and Washington, D.C., are moving in the opposite direction.

The mix of larger projects also matters for delivery concentration. A smaller set of developments can create larger local supply additions when those projects eventually complete.