Multifamily Permitting Levels Align Across Key US Markets

Despite big swings in individual markets, four major metros ended up with nearly identical permit totals.

Jordan B.
May 30, 2025

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Good morning. Multifamily permitting across top US markets landed in a tight range last month, but how they got there varies widely. From surging Orlando to cooling Austin, the numbers tell a tale of shifting momentum.

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Market Snapshot

S&P 500

GSPC

5,912.17

Pct Chg:
+0.40%

FTSE NAREIT

FNER

769.74

Pct Chg:
+0.76%

10Y Treasury

TNX

4.424%

Pct Chg:
+0.037

SOFR

30-DAY AVERAGE

4.34%

Pct Chg:
-0.00

*Data as of 05/29/2025 market close.

Market Alignment

Multifamily Permitting Levels Align Across Key US Markets

Despite mixed momentum across US cities, four key markets found common ground in multifamily permit volume.

Markets align: New U.S. Census data shows a notable convergence: Austin, Orlando, Phoenix, and Atlanta each posted annual multifamily permit totals between 11,400 and 12,300 for the year ending April 2025. But while Orlando surged ahead with a 4,351-unit increase, Austin (-7,910), Phoenix (-5,891), and Atlanta (-3,088) saw notable YoY declines.

Shifting ranks: Austin saw the steepest decline, down nearly 8,000 units, followed by Phoenix (-5,891) and Atlanta (-3,088). Markets like New York, Dallas, and Houston notched modest permitting gains, while Columbus, OH jumped almost 22% YoY.

Permit pullbacks: In contrast, Los Angeles and Washington, DC also recorded sizable drops of 4,000–4,500 units. South Florida metros struggled too: Miami’s permitting fell by over 3,000 units, sliding it to #16 nationally, while Tampa mirrored that loss.

Hotspots: While many metros slowed, a few smaller markets bucked the trend. Chicago, Anaheim, and cities like Fayetteville, Omaha, Des Moines, and Augusta all saw 1,200–2,200 unit increases in permitting YoY, highlighting emerging hot spots for development.

➥ THE TAKEAWAY

Big picture: Multifamily permitting offers a glimpse into future supply and sentiment. While some pandemic-era hotspots are cooling, growth is spreading to up-and-coming areas as developers chase opportunities beyond the usual metros.

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✍️ Editor’s Picks

Multifamily momentum: Despite today’s high interest rates and construction headwinds, multifamily developers who build now are set to benefit from a looming supply shortage, rising rents, and stronger investor demand by 2026–2027. (sponsored)
Investor optimism: Apartment sales rose 20% YoY to $9.2B in April, even as prices dipped 1%, showing renewed investor interest amid market uncertainty.
Valuation gap: REITs are weighing sales and restructurings to close the widening disconnect between their stock prices and underlying property values.
Public support: Trump’s latest update on GSE privatization clarifies that Fannie and Freddie would retain federal loan guarantees even after going private.
Market leader: The Midwest led all US regions in annual rent growth for April at 3.6%, far outpacing the national average of 1%.
Yield surge: Long-dormant bond vigilantes are back, driving Treasury yields higher as weak auctions and rising fiscal concerns undermine confidence in US debt.

🏘️ MULTIFAMILY

Zoning greenlight: NYC approved a rezoning along Atlantic Avenue to allow 4,600 new homes—1,900 of them affordable—after years of community planning.
Leasing momentum: For the first time in two years, Phoenix’s multifamily demand outpaced new deliveries, nudging vacancy down as construction begins to slow.
San Fran revival: Strada is planning 1,500 apartments in SoMa as rents surge and new zoning eases residential development.
Coliving distress: X Co. has defaulted on $325M in loans tied to coliving projects in Phoenix and Denver, now up for sale through Newmark.
Investor wipeout: Hundreds of Israeli investors lost $70M after Madison Realty Capital took over HAP’s stalled Washington Heights project through a bankruptcy sale.

🏭 Industrial

Storage stronghold: Five major players dominate over a third of the US self-storage market, but the sector remains fragmented and ripe with opportunity for smaller operators.
Community concerns: Georgia is becoming the epicenter of America’s data center gold rush, with over $44B in projects announced in 2025 alone.
Driving south: Mercedes-Benz will establish a new R&D hub and relocate 500 high-tech jobs to Atlanta, deepening its US roots.

🏬 RETAIL

Consumer habits: Despite inflation, changing shopping habits, and growing discount competition, grocery store foot traffic is holding steady.
Store strategy: Macy’s is trimming its earnings outlook as it continues closing stores and navigating tariffs and cautious consumer spending
Brand loyalty: Barry’s Bootcamp is accelerating global growth with plans for 20 new studios annually, capitalizing on premium branding and post-pandemic consumer loyalty.
Automation push: Walgreens has restarted its micro-fulfillment center rollout with a new Minnesota site, aiming to boost automation, cut costs, and handle rising prescription volumes.

🏢 OFFICE

Foot traffic: April 2025 marked the third-busiest office month since the pandemic, with New York nearly closing its visit gap and San Francisco leading in year-over-year growth.
Shared space: Coworking now accounts for 59.2 MSF nationally, with Chicago, Manhattan, and LA leading the charge.
Stretching out: Defying Seattle’s record office vacancy, Lululemon is doubling its downtown footprint to 46 KSF.
Bullish on Boston: Fresh out of bankruptcy, WeWork is reaffirming its bet on Boston’s densest office corridors.

🏨 HOSPITALITY

Travel boost: San Francisco’s hospitality sector is showing signs of recovery, with RevPar expected to jump 8.4% in 2025.
Deal terms: While hotel brands hold the upper hand, franchisees can still negotiate key terms to protect their interests.
Resi conversion: SomeraRoad acquired Brooklyn’s long-stalled Hotel Bossert for $100M and plans to convert the landmark into residences.
Extended stay: Noble Investment Group has acquired 16 WoodSpring Suites properties, expanding its service-light, extended stay platform.