Despite a sharp increase in multifamily starts in July to 363,000 units, the category and permits have continued to slow from peak levels in 2022.

Annualized multifamily starts were up 11.7% in July, but still down 21.8% from the same time last year, according to an analysis by RealPage of U.S. Census Bureau and Department of Housing and Urban Development data. Permits decreased 12.4% for the month and 18.2% for the year to 408,000 units and appear to be leveling off close to the average of about 420,000 units from 2013 to 2020, according to the analysis.

The annual rate for multifamily permitting decreased in three of four Census regions compared with last year. The deepest decline was in the West, which was down 28.9% to 92,000 units. Permitting in the South declined by 20.4% to 200,000 units and the Midwest declined by 16.3% to 53,000 units. The Northeast was the only region with an increase in permitting, up 13.7% to 65,000 units, the analysis said.