San Antonio has experienced a sharp decline in new multifamily construction permits, with only 18 permits filed so far in 2025 compared to 526 in 2020. This represents a 96.6 percent decrease, the largest percentage drop among U.S. cities during this period, according to an analysis by HomeAbroad using U.S. Census Bureau data.
Despite this slowdown in development, San Antonio remains one of the fastest-growing cities in the country, ranking fourth nationally for new residents. Nearly 24,000 people moved to the city between 2023 and 2024.
Other major Texas cities have also seen declines in multifamily permits over the past five years. Austin’s permit numbers dropped by 29 percent, from 1,868 to 1,321. Houston saw a decrease of 14 percent, from 1,669 to 1,409 permits. In contrast, Dallas-Fort Worth recorded a nearly 20 percent increase in permits during the same period.
A surge of apartment construction across Texas has led to an oversupply of rental units in many metropolitan areas. As a result, both occupancy rates and rent prices have fallen.
JLL’s Kai Penn commented on San Antonio’s rental market at a Connect CRE conference: “San Antonio ranks second in the country for rental affordability, with renters spending an average of 17 percent of their income on housing.”
According to Newmark’s mid-year report for San Antonio, average occupancy was at 93.2 percent and average asking rent stood at $1,237 per month. The report noted that the significant reduction in new multifamily developments is expected to put upward pressure on these figures.
Even though new construction has slowed dramatically, San Antonio still faces a substantial housing shortage. A report by Up for Growth found that the metro area is underbuilt by more than 25,000 housing units as of 2024.
Housing shortages are even greater elsewhere in Texas: Dallas-Fort Worth is underbuilt by about 122,000 units; Houston lacks approximately 79,000 units; and Austin falls short by around 24,000 units.
