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Multifamily Permitting Activity Surges in Some Markets

Multifamily Permitting Activity Surges in Some Markets

Despite continuing headwinds such as labor shortages and increased material costs, the annual pace of multifamily permits surged in some of the nation’s largest apartment markets recently. During the year-ending January, the number of construction permits authorized for multifamily units increased more than 50% year-over-year in 13 of the nation’s largest 50 apartment markets, according to the U.S. Census Bureau. Philadelphia saw an annualized total of 25,194 permits issued for multifamily residences in January. That was more than three times the volume during the previous 12-month period. Philadelphia’s surge in multifamily permitting was due to the city’s property tax abatement program that expired at the end of 2021. This program allowed developers to avoid paying real estate taxes for 10 years. Atlanta also posted a surge in activity with 7,702 units authorized for construction in the year-ending January, nearly triple the growth pace from a year earlier. Annual multifamily permit issuances nearly doubled in St. Louis, Cincinnati, Riverside and Jacksonville. Other markets recording more than 50% increases in multifamily permits during the year-ending January included Denver (85.5%), Fort Worth (83.1%), Raleigh (71.4%), Dallas (68.3%), Greensboro (68.2%), Indianapolis (53.0%) and Charlotte (52.0%).