Permits for new apartments in Raleigh fall below pandemic rate
Add Axios as your preferred source to
see more of our stories on Google.
The number of permits issued to build apartments in the Raleigh metro area has begun to fall below its pandemic peak.
- Yes, but: The rate of new permits remains among the highest in the country.
Why it matters: Since 2020, Raleigh has experienced one of the largest waves of new apartment construction in the country, especially for its size.
- This has helped stabilize the large rent increases that happened during the first years of the pandemic. In fact, median rent over the past year has fallen more than 2% to $1,403 per month, according to ApartmentList data.
The big picture: Many are watching to see if the rate of construction will continue in Raleigh, given the pressure of high interest rates and a large supply of apartments coming on the market.
- Some projects are already pausing plans because it's harder to get financing due to an influx of new apartments slowing future rent growth in the region.
By the numbers: U.S. developers got permits to build an average of 12.4 multifamily units per 10,000 people in recent months, according to Redfin's analysis of Census Bureau data.
- That's down roughly 27% from the pandemic surge (17 units).
In the Raleigh metro, developers got permits to build 41.1 multifamily units per 10,000 people in recent months — the fourth-highest rate in the country.
- Between 2020 and 2023, that number was 48 units. And between 2014 and 2020, it was 27.4 units.