Permits Pullback in February 2025
Despite an overall dip in housing permits, several regions and states have shown encouraging signs in early 2025. Notably, the South and Midwest experienced increases in multifamily permits, rising by 11.8% and 9.7%, respectively. Florida led the nation in multifamily permits with a significant 63% increase, while Iowa saw a remarkable 177.4% surge. Additionally, 19 states and the District of Columbia reported growth in single-family permits, with D.C. experiencing a 133.3% increase. These trends suggest that, despite national headwinds, certain markets are demonstrating resilience and potential for growth.
However, the national landscape presents challenges. Single-family permits issued nationwide in the first two months of 2025 totaled 147,119, marking a 5.2% decline compared to the same period in 2024. Multifamily permits also decreased by 6.7% year-over-year. Regionally, single-family permits declined across all areas, with the South experiencing the largest drop at 6.3%. In the multifamily sector, the Northeast and West saw significant decreases of 45.2% and 18.0%, respectively.
At the state level, major housing markets faced downturns. Texas, leading in single-family permits, issued 24,960 permits—a 5.6% decrease from the previous year. Florida and North Carolina also reported declines of 8.3% and 4.5%, respectively. In the multifamily sector, while Florida showed growth, Texas and California experienced declines of 9.0% and 21.7%, respectively. These figures highlight the uneven nature of the housing market’s recovery and the need for targeted strategies to address regional disparities.
