San Antonio has seen a sharp decrease in multifamily construction permits, marking the largest percentage drop among major U.S. cities from 2020 to 2025, according to an analysis by HomeAbroad using U.S. Census Bureau data. In 2020, the city recorded 526 new permits for multifamily projects, but only 18 have been filed so far this year, representing a decline of 96.6 percent.
This significant reduction comes at a time when San Antonio is experiencing strong population growth. Between 2023 and 2024, nearly 24,000 new residents moved to the city, making it fourth in the nation for net migration during that period.
Other Texas cities have also seen changes in their multifamily permit activity over the last five years. Austin experienced a 29 percent decline (from 1,868 to 1,321), while Houston saw a decrease of about 14 percent (from 1,669 to 1,409). In contrast, Dallas-Fort Worth increased its permit count by almost 20 percent (from 4,847 to 5,800).
The surge in apartment construction across Texas has led to an oversupply in several markets. This situation has contributed to lower occupancy and rent rates throughout major metropolitan areas in the state.
Despite fewer new projects being approved recently, demand for housing remains high in San Antonio. The city is currently underbuilt by more than 25,000 units according to a report published by Up for Growth in 2024. For comparison: Dallas-Fort Worth faces a shortage of about 122,000 units; Houston’s shortfall stands at approximately 79,000 units; and Austin is behind by around 24,000 units.
Rental affordability remains relatively strong locally. “San Antonio ranks second in the country for rental affordability, with renters spending an average of 17 percent of their income on housing,” said JLL’s Kai Penn during a Connect CRE conference focused on Texas’ multifamily sector.
As of mid-year reporting from Newmark shows that average occupancy rates were at approximately 93.2 percent with average asking rents reaching $1,237 per month within San Antonio’s multifamily market. Analysts expect that as fewer developments come online due to declining permitting activity these figures could increase further.
The current contraction within San Antonio’s development pipeline underscores ongoing challenges facing both developers and residents as they navigate supply constraints amid continued population growth.
