Austin Building Permits Update – December 2025
The latest Austin building permit data through December 2025 shows a clear deceleration in construction activity compared to recent peak years, while still remaining elevated relative to long-term historical norms. This shift is important for understanding the direction of Austin real estate supply heading into 2026.
In December 2025, a total of 2,269 residential permits were issued across all unit types. That represents a 26.2 percent decline year over year compared to December 2024. However, the December total remains 22.6 percent above the long-term December average. On a single month basis, activity has slowed materially from last year, but it is not historically weak.
Looking at the full year provides better context. From January through December 2025, Austin issued 27,438 total residential permits. That is down 18.2 percent compared to 2024, yet still 17.5 percent above the long-term annual average. When viewed against the extraordinary expansion years of 2020 through 2022, permit activity has normalized significantly. However, compared to pre-pandemic levels and post-2008 recovery years, overall construction remains structurally elevated.
Single-family construction continues to represent the core of Austin housing supply. In December 2025, 1,025 single-family permits were issued. That figure is down 4.8 percent year over year but remains 12.0 percent above the long-term December average. On an annual basis, 14,978 single-family permits were issued in 2025, a 12.2 percent decline from 2024, yet still 14.5 percent above the historical norm. The data reflects moderation, not contraction to recessionary levels.
A more precise way to measure supply intensity is permits per 100,000 population. Total permits per 100,000 residents in December 2025 came in at 85.2. That is down 27.8 percent year over year and 6.5 percent below the long-term average. On a cumulative basis, total permits per capita in 2025 were down 20.0 percent year over year and 12.4 percent below average. This indicates that, relative to population growth, supply expansion has shifted from above-normal to slightly below-normal levels.
Single-family permits per 100,000 population in December registered at 38.5. That reading is down 6.9 percent year over year and 17.4 percent below the historical December average. On a cumulative basis, single-family permits per capita were down 14.1 percent year over year and 16.6 percent below average. These figures confirm that builders have scaled back production intensity relative to population growth.
The 2–4 unit category remains a smaller and more volatile segment of the market. December 2025 recorded 22 permits in this category, up 29.4 percent year over year but 40.0 percent below the long-term December average. Cumulatively, 764 permits were issued in 2025, up 3.4 percent year over year and 67.9 percent above the historical average. While this segment contributes to overall supply, its impact is far smaller than single-family construction.
When comparing 2025 totals to peak construction years, the normalization is evident. Total permits exceeded 40,000 units in 2020 and surpassed 51,000 units in 2021. The 2025 total of 27,438 units represents a substantial reduction from those expansion levels. However, it remains well above the post-Great Recession years of 2009 through 2013. The market has transitioned from acceleration to recalibration rather than collapse.
From a technical supply perspective, the data shows three clear trends. First, year-over-year comparisons are negative across most major categories. Second, activity remains above long-term structural averages in total volume. Third, per-capita permit issuance has moved back toward or slightly below historical norms. Taken together, this suggests the Austin housing supply pipeline is moderating, not contracting sharply.
For those analyzing Austin real estate supply conditions heading into 2026, the December 2025 building permit data indicates a construction environment that is cooling from historic highs while remaining materially active relative to long-term averages. The adjustment phase is measurable in the data, but the underlying construction base remains historically strong.
