According to a recent report by Redfin, the number of multifamily building permits issued in the U.S. has decreased by almost 30% compared to previous years. This decline is attributed to factors such as higher interest rates for construction projects and an oversupply of new units on the market due to a recent building boom.
In Cape Coral, FL, builders have obtained permits for 27 multifamily units per 10,000 people this year – making it the top metro among the 79 analyzed by Redfin. Other metros with high levels of multifamily permits include Austin, TX (21 per 10,000 people), Greensboro NC (20), North Port FL (18), Omaha NE (17) and Nashville TN (15).
On the other hand,the two metros with lowest number of multifamily permits are Stockton and Bakersfield in California where no permits were issued during this period. They are followed closely by Providence RI , El Paso TX , Baton Rouge LA , Cleveland OH , Fresno CA , Detroit MI Dayton OH and New Orleans LA all having only one permit each.
The decrease in multi-family housing construction can be seen across various regions but is most prominent in these areas mentioned above . This trend may continue as builders seek fewer building projects due to rising costs and an abundance of available rental properties.
