Multifamily Construction Momentum is Mixed

Multifamily construction trends remain uneven at both the national and local levels, reflecting broader economic conditions that continue to deliver mixed signals. Just as some markets are gaining jobs and others are shedding them, several markets are seeing increased multifamily permitting while previously active markets are pulling back.

Seven of the top 10 markets in the country for multifamily permitting in May saw significant year-over-year increases in annual permitting totals, averaging a more than 43% gain or about 4,250 more units each. Los Angeles, in particular, nearly doubled their annual unit count from last May. Two of the top 10 markets were little changed from last year, but Atlanta decreased their annual permitting by about 8% or 1,144 fewer units.

In addition to the seven top 10 markets, other markets with significant increases in annual units permitted in May were San Jose (+4,534 units), Salt Lake City (+2,190 units), Cincinnati (+2,077 units), Seattle (+2,072 units) and Tacoma (+2,017 units). Overall, the sum of permitted units for May’s top 10 of 146,720 units was up 24.4% for the year but down 0.3% for the month.

In terms of momentum, six of the top 10 markets’ annual permitting totals were greater in May than in December 2025, some by a lot. Los Angeles is up 47.6% and Washington, DC by 42.5%. New York and Raleigh/Durham increased permitting by 27.4% and 30.3%, respectively, while Dallas and Miami are virtually unchanged from five months ago. Houston and Phoenix have shifted to lower permitting volumes in recent months.

Last month, we highlighted the (relatively small) markets with the greatest percentage increases in multifamily permitting, with unit count increases typically in the 1,000 to 2,000 range. This month, several relatively large markets cut their annual permitting in May by a third or more compared to last year, including San Antonio (-2,889 units or -76.8%), Las Vegas (-1,237 units or -36.7%), Austin (-4,309 units or -33.3%) and Anaheim (-1,291 units or -32.2%).

Smaller markets with significant decreases include Augusta, GA (-1,264 units or -97.5%), Lakeland-Winter Haven, FL (-2,147 units or -87.2%) and Cape Coral-Fort Myers, FL (-1,492 units or -32.7%). Orlando is another market with a significant decrease in units permitted for the year (-2,385 units or -20.9%).

Permitting by Place

Below the metro level, eight of April’s top 10 permit-issuing places returned to this month’s list with only the city of Phoenix remaining in the same place. The list of top individual permitting places (cities, towns, boroughs and unincorporated counties) generally includes the principal city of some of the most active metro areas.

The cities of Miami and Cleveland swapped places this month at #4 and #5 with about 6,400 units permitted each, while Phoenix retained the #6 spot with 5,850 units permitted. The Queens borough replaced the city of Austin at #7 in May as unincorporated Harris County (Houston) moved up one spot to #8. The city of Denver slipped a spot to #9 and the city of Atlanta cracked the top 10 at #10 with just over 5,000 units.

In May, Texas had only one city or permitting place in the top 10, although the cities of Austin, Dallas, Houston, Fort Worth and Dallas’ suburb Frisco made the top 20.

Only three of this month’s top permitting places had more units permitted for the year than last month, with an average increase of about 540 units. Led by a 1,250-unit decrease in the city of Columbus, the seven other top 10 places averaged a decline of about 360 units from last month (-2,543 units total).

Texas again placed six of the top 20 permitting places on May’s list, followed by three each for New York and California. North Carolina and Florida contributed two places each.