Builders are seeking fewer construction permits for multifamily properties due to elevated interest rates and an increasingly saturated market.

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.