Even though 8.3% more permits were granted for multifamily construction in August compared to July this year, viewed on an annual basis the rate of multifamily permitting dropped 16.8% in all U.S. census regions, even as multifamily deliveries spiked.

With a 42% plunge in annualized multifamily permitting, the West experienced the biggest drop in permits issued in August, according to an analysis by RealPage Analytics of new census data. It was followed by the Northeast with a 22.4% drop, and the Midwest with a 9.5% dip. The South slowed the least, falling by just 1.4% over the year.

"Of the top 10 multifamily permitting markets, all but New York decreased its annual totals from the year before and some were significant declines. Dallas had the largest decrease in annual multifamily permitting of the top 10 markets (-10,640 units), followed closely by Houston (-10,437 units), Atlanta (-6,236 units), Los Angeles (-5,800 units), Washington, DC (-5,512 units), Raleigh/Durham (-3,740 units), Phoenix (-2,327 units), Tampa (-1,941 units) and Austin (-1,805 units)," the report said. The 140,593 permits issued in the top 10 metros were 23% fewer than the number issued the year before and down 1.1% from July.