According to Redfin, permits to build apartments in the United States have dropped nearly 30% since the pandemic. Builders have obtained permits to construct 13 multifamily housing units for every 10,000 people in the country so far this year, according to its new report based on data from the U.S. Census Bureau. In addition to the challenging interest rate environment, builders may be waiting out a building boom in recent years that has made it difficult for property owners to find tenants. Only 47% of newly completed apartments were rented within three months at the end of last year, the lowest share since 2020, said Redfin. Although permits have slowed significantly to below their 10-year historical average, the number of units being completed remains at historic highs as projects started during the pandemic are now being completed. This has created a backlog of new units property owners are competing with each other to rent out, which is putting downward pressure on rents. Asking rates, which were growing by 18% during the pandemic, rose only 1% in the past year, said Redfin, though it noted asking rents are still at their highest level since 2022." https://lnkd.in/g5gGfRM3