Slowing construction permits for apartment communities is expected to leave the United States with a continued housing shortage and a return to rising rents.
“The nation is short 3.8 million homes,” said Danielle Hale, Chief Economist of Realtor.com. “The low level of permitting for multifamily housing, particularly in markets where rents are still climbing, may become a catalyst for future rent growth.”
The country’s top 50 cities have seen rent declines in the last year thanks to a construction boom during the COVID-19 pandemic, but with the pace of building slowing, those rents could rebound.
In the Phoenix area, only 1,357 multifamily units were permitted in 2024, a 14% drop from the five-year average.
