Austin Multifamily Market Report
Market Overview
The Austin multifamily sector maintains a strong position and is part of one of the top-growing metros nationally. This can be attributed to healthy performance in the job market here, which grew by 2.1%, outpacing the national average. The education and health services sector noted the greatest boost so far, at a rate of 3.8%. This can likely be attributed to roles at the University of Texas at Austin, which is the second-largest employer in Austin.
Austin Multifamily By the Numbers | Q1 2024 vs. Q3 2024
Q3 2024
- Vacancy Rate: 14%
- Rent Growth: -5.1%
- Delivered Units: 27,894
- Sales Volume: $475M
Q1 2024
- Vacancy Rate: 14%
- Rent Growth: -5.6%
- Delivered Units: 24,877
- Sales Volume: $461M
Market Performance
Despite the high vacancy rate here, the uptick in demand from the growing population helps stabilize this metric. Throughout the first half of 2024, vacancy increased by 100 basis points. This is a dip from the end of 2023, when Austin multifamily noted an uptick of 270 basis points in the vacancy rate. Demand from residents has been strongest for upper-tier properties here. Throughout the past 12 months, Class A buildings comprised 90% of all units absorbed in the metro. As a result of the addition of many high-end properties in Austin, rent growth here lowered to -5.3%, which is now the lowest among all class segments.
Austin is still seeing historic amounts of supply being added to the metro. There are currently 30,000 units underway, placing the Austin multifamily third for most units delivered nationally. Suburban areas are seeing the most development, with 19,000 units underway in outer parts of the metro, such as Northeast Austin, San Marcos and Georgetown-Leander. The increase in supply made selling in the metro difficult; despite this, Austin saw a total of $515 million in sales throughout the last 12 months.
