Multifamily Development Is More Concentrated Than Metro Rankings Suggest
Our monthly multifamily permitting ranking typically focuses on metros, highlighting where the largest volumes of new apartment development are taking place. However, looking beneath the metro-level totals reveals an equally important story: in many of the nation's fastest-growing apartment markets, development activity is heavily concentrated within a handful of cities, and often within the urban core itself.
The top 10 multifamily permitting metros accounted for 150,614 permits over the past year through August, up 25% year-over-year and 3.4% from the prior month. Nine of last month's top 10 permitting metros remained in the rankings, with Austin replacing Denver at the #10 spot. New York (36,496 units), Los Angeles (17,926), Dallas (15,924) and Houston (13,772) continued to lead the nation in multifamily permitting activity.
Dallas remained among the top permitting metros despite an annual decline of roughly 2,300 units permitted, and several other major markets posted even steeper decreases, including Orlando (-3,496 units), Columbus (-2,619 units), Miami (-2,219 units), Lakeland-Winter Haven (-1,999 units) and Chicago (-1,927 units). At the same time, significant increases in annual permitting occurred in West Palm Beach (+2,502 units), San Jose (+2,427 units), Cincinnati (+2,207 units) and Oakland (+2,008 units).
Frequently, however, metro totals are driven by a relatively small number of local permitting jurisdictions. In fact, several of the nation's top permitting places are also the primary cities driving activity within the leading permitting metros. The city of Los Angeles alone issued 13,608 multifamily permits, representing roughly three-quarters of all permits across the Los Angeles-Long Beach-Glendale metro. Similarly, the city of Phoenix accounted for more than half of the permits issued across the Phoenix-Mesa-Chandler metro, while the cities of Atlanta, Houston and Austin each generated a substantial share of their respective metro totals. Reflecting this concentration, only one change occurred in the August ranking of top permitting places, with the city of Houston replacing the city of Denver in the top 10.
August’s multifamily permitting data also highlights that some development hotspots are emerging as standalone growth centers rather than simply satellites of larger metropolitan areas. The city of Columbus, Ohio ranked eighth nationally among permitting places with 5,567 units permitted despite not appearing among the top 10 permitting metros. Likewise, the city of Fort Worth generated 5,408 units permitted on its own, underscoring how major development activity within the greater Dallas-Fort Worth Metroplex extends beyond the traditional core city of Dallas or its northern suburbs.
Perhaps the biggest takeaway is that apartment development remains closely tied to urban centers despite persistent discussions around suburban migration. While many top metros encompass dozens of permitting jurisdictions, the largest shares of new multifamily construction are often concentrated in major cities where employment density, transit access, redevelopment opportunities and housing demand remain strongest. Looking beyond metro-level rankings reveals not just where development is occurring, but precisely which cities are driving the nation's next wave of apartment growth.
