Multifamily housing permits drop below pandemic levels
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Permits for multifamily housing in San Francisco have dropped below pre-pandemic and pandemic-era levels, even as rent continues its upward trend, Redfin data shows.
Why it matters: Demand for multifamily units has ticked up in recent months due to the growth of AI companies, yet many projects remain on hold amid cost and financing constraints, experts say.
By the numbers: San Francisco approved 8.4 multifamily units per 10,000 people from April 2024 to May 2025, Redfin's analysis of Census Bureau data found.
- That's about half the number permitted during the pandemic (16.2).
- The city approved an average of 20.2 units per 10,000 people during the pre-pandemic period assessed in the study (2014 to 2020).
Yes, but: Multifamily rent here continues to rise, per commercial real estate information company Costar.
- The annual average rent growth rate hit 2.8% in February, marking a two-year high in the SF market.
Zoom out: U.S. developers got permits to build an average of 12.4 multifamily units per 10,000 people in recent months, according to Redfin.
- That's down roughly 27% from the pandemic surge (17 units) and down around 5% from pre-pandemic (13.1 units).
- Meanwhile, 63% of major metros are seeing fewer units approved per 10,000 people compared to pandemic-era averages.
Between the lines: Builders nationwide are "pumping the brakes because elevated interest rates are making many projects prohibitively expensive," Redfin senior economist Sheharyar Bokhari wrote in the report.
- The construction slowdown, which tariffs could prolong, risks reigniting rent inflation — especially in cities where demand still outpaces supply.
What we're watching: Mayor Daniel Lurie recently announced a legislative package to bolster multifamily housing by updating height and density rules and allowing higher housing density near commercial and public transit areas.
- "Families deserve to live in San Francisco — not just visit, not just commute, but live here, grow here, and thrive. They deserve a city that loves them back," Lurie said at a press conference.
Go deeper: SF could add more than 61,000 housing units by converting vacant offices