Austin apartment permits have plummeted since the pandemic

Austin has experienced a significant drop in multifamily housing permits, averaging 64. 5 per 10,000 residents from April 2024 to March 2025, according to Redfin's analysis. This decline reflects a decrease from nearly 95 permits during the pandemic's peak, as high borrowing costs and stabilizing rents make new construction less appealing. The slowdown jeopardizes the city's efforts to keep rents affordable, as the median asking rent fell 10. 7% year-over-year to $1,420 in March.

While Austin still issues more multifamily permits than other metropolitan areas, which average 12. 4 per 10,000 residents, the trend raises concerns about future housing availability. Mayor Kirk Watson plans to propose a resolution at the City Council meeting to explore incentives for taller buildings that include affordable housing options. Builders nationwide are cautious, citing elevated interest rates as a barrier to new projects. A broader trend shows that 63% of major U.

S. metros are experiencing similar declines in approved units compared to the pandemic era. This context emphasizes the need for local officials to find solutions to maintain housing affordability in Austin.