Builders Stay Cautious as Single-Family Permits Extend Downtrend

Single-family housing permits slipped for the seventh month in a row, highlighting affordability headwinds and weak demand. While multifamily permits ticked up, the sector’s volatility leaves the outlook uncertain. The split underscores a housing market still under strain, with single-family softness weighing on broader growth prospects.

Over the first seven months of 2025, the total number of single-family permits issued year-to-date (YTD) nationwide reached 565,208. On a year-over-year (YoY) basis, this is a decline of 5.7% over the July 2024 level of 599,308. For multifamily, the total number of permits issued nationwide reached 286,836. This is 2.6% higher compared to the July 2024 level of 279,618.

Year-to-date ending in July, single-family permits were up in one out of the four regions. The Midwest posted a small increase of 2.0%. The Northeast was 2.5% lower, the South was down by 6.6%, and the West was down by 8.3% in single-family permits during this time. For multifamily permits, three out of the four regions posted increases. The Midwest was up by 23.3%, the West was up by 5.9%, and the South was up by 5.7%, Meanwhile, the Northeast declined steeply by 26.8%, driven by the New York-Newark-Jersey City, NY-NJ MSA which declined by 38.0%.

Between July 2025 YTD and July 2024 YTD, 16 states posted an increase in single-family permits. The range of increases spanned 18.1% in Hawaii to 0.5% in New Jersey. The remaining 34 states and the District of Columbia reported declines in single-family permits with the District of Columbia reporting the steepest decline of 28.8%.

The ten states issuing the highest number of single-family permits combined accounted for 62.8% of the total single-family permits issued. Texas, the state with the highest number of single-family permits, issued 90,561 permits over the first seven months of 2025; this is a decline of 7.2% compared to the same period last year. The second highest state, Florida, decreased by 11.9%, while the third highest, North Carolina, posted a decline of 2.2%.

Between July 2025 YTD and July 2024 YTD, 29 states recorded growth in multifamily permits, while 21 states and the District of Columbia recorded a decline. Mississippi (+97.3%) led the way with a sharp rise in multifamily permits from 222 to 438, while Wyoming had the largest decline of 53.1% from 196 to 92.

The ten states issuing the highest number of multifamily permits combined accounted for 61.6% of the multifamily permits issued. Over the first seven months of 2025, Florida, the state with the highest number of multifamily permits issued, experienced an increase of 23.8%. Texas, the second-highest state in multifamily permits, saw an increase of 10.9%. California, the third largest multifamily issuing state, increased by 5.8%.

At the local level, below are the top ten metro areas that issued the highest number of single-family permits.

For multifamily permits, below are the top ten local areas that issued the highest number of permits.