Austin still leads in multi-unit permitting as nation falls to below pre-COVID levels
AUSTIN (KXAN) — A report released Friday by the real estate company Redfin states permits for new apartment buildings are down across the U.S. However, the Austin-Round Rock metro (MSA) is still ahead of its pre-pandemic position and the rest of the country.
According to the report, U.S. permitting is down by 5.5% from its lowest point in 2019, from 13.1 per 10,000 people to 12.4 now. This follows a national construction boom that occurred between 2021 and 2025.
“Remote work during the pandemic allowed scores of Americans to relocate, leading to a surge in rental demand. Builders ramped up construction in response—particularly in high-demand Sun Belt metros like Austin, TX and Tampa, FL,” the report states. “But now, rents are flattening and borrowing costs are high, making building less attractive.”
The Austin-Round Rock MSA is currently issuing permits at a rate of 64.5 per 10,000 residents, according to the release. That rate was 49.6 per 10,000 people prior to the pandemic and reached a height of 94.5 during the boom period.
Permits are a major step in the construction process. While the process may differ across municipalities, builders often have to submit a site plan to local officials prior to receiving a permit to begin work on a building.
Multi-unit structures often have more requirements than single homes. This sometimes can mean the process takes longer.
“New apartments are being rented out at the slowest speed on record and builders are pumping the brakes because elevated interest rates are making many projects prohibitively expensive,” said Redfin Senior Economist Sheharyar Bokhari in the release. “At some point in the next year, the slowdown in building will mean that renters have fewer options—potentially leading to an increase in rents.”
How are Texas’ other cities faring?
Texas’ other big metros haven’t done as well as Austin has.
The Dallas-Fort Worth MSA is at a permitting rate of 27.5, below its pre-pandemic rate of 31.1. The metro didn’t see a massive jump during the pandemic and only reached a rate of 31.2.
- Houston: At 16.8; 23.3 pre-pandemic and peaked at 29.4
- San Antonio: At 15; 10.8 pre-pandemic and peaked at 34.1
- McAllen: At 5.2; 9.8 pre-pandemic and peaked at 5.4
- El Paso: At 1.6; 9.9 pre-pandemic and peaked at 2.7
