As affordability challenges continue to plague the for-sale market, renting remains a viable financial option for many, particularly for younger demographics. Permits are a strong indicator of what housing activity and demand will look like in the future. We’re checking in on how multifamily permit levels are changing at the state, metro, and local levels in Virginia.

The number of multifamily permits in the state rose 5.7% to 756 total permits in June 2025. Although permit levels increased from last year, they are below the average number of permits over the last 25 years. Permits have also dropped off significantly from the highs of 2022 (-50%) and 2023 (-42.5%). Multifamily demand remains strong, but elevated interest rates coupled with higher construction costs have builders considering whether to take on new projects. According to the National Association of Home Builders (NAHB) Multifamily Production Index, sentiment among builders and developers has gone up in the second quarter of the year to 46, but remains below 50, which indicates challenging conditions.

There were a mix of multifamily permit gains and declines across Virginia’s metro markets. Roanoke had the biggest drop-off in year-to-date permit levels going from 53 in June of 2024 to 0 in June of 2025, falling by 100%. Northern Virginia had the highest number of year-to-date multifamily permits in June (3,212 permits) but saw a significant drop-off in authorizations compared to last year (-38.5%). Permit activity went up the most in Charlottesville (+840%), Harrisonburg (+172%) and Richmond (+92.1%). Multifamily permit numbers were unchanged in Blacksburg and Winchester with both markets having 0 authorizations in June 2025.

The local market with the largest number of multifamily permits in June was Richmond City with 1,660 permits year-to-date, up from 765 last year. Charlottesville saw a significant increase in permits going from 10 last year to 834 in June of 2025. Henrico County rounded out the list with multifamily permit levels growing 17.7% with 571 total authorizations.

Although multifamily permits grew year-over-year in the state, there has been a slowdown in construction and deliveries over the last few months. As we head into the remainder of 2025, it will be important to watch how the economy and the financial challenges of the housing market impact renters and multifamily developers.

For more information on housing, demographic, and economic trends in Virginia, be sure to check out Virginia REALTORS^® other Economic Insights blogs.