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Market Report

Austin Multifamily Market Report

2024 Investment Forecast

Austin Braces for Record-High Completion Slate;
Corporate Relocations Promote Investment

Increasing renter base will counterbalance the 2024 supply wave long-term. Austin will have the fastest-growing age 20- to 34-year-old cohort among major U.S. markets in 2024 as the group expands by 1.8 percent. This demographic traditionally rents while saving for a first-time home purchase, a trend that is prolonged in Austin due to the rising cost of a median-priced single-family house, up over $100,000 since just 2019. While Austin’s renter pool is consistently augmented by in-migration — a trend unlikely to end in the near future as companies like Tesla, Apple and Oracle make the metro home — multifamily supply additions have begun to outpace demand. This dynamic places significant upward pressure on vacancy, resulting in the metric hitting a 20-year high in 2024. The supply wave is likely reaching its peak, however, as new starts have fallen amid rising material, labor and borrowing costs, allowing supply and demand to realign long-term.
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