Developers are pulling back from new apartment projects across the United States, with building permits for multifamily units falling below levels seen before the COVID-19 pandemic, according to a new analysis by Redfin.
Over the 12 months ending March 2025, developers obtained permits to build 12.4 multifamily units per 10,000 people nationwide. That figure is down 27.1 percent from the height of pandemic-era construction and 5.5 percent below the pre-pandemic average.
The findings, based on U.S. Census Bureau data and released by Redfin on May 2, highlight a shift in the housing market following a construction boom fueled by remote work and migration to Sun Belt cities. Nearly two-thirds—63 percent—of the 78 major metropolitan areas analyzed have issued fewer permits than during the pandemic years….