Market Report
Austin Multifamily Market Report
2025 Investment Forecast
Tech Inflows and Slower Permitting Suggest Long-Term
Upside Potential Exists Amid Short-Term Growing Pains
Population gains and corporate expansions align with ongoing supply wave. In 2025, Austin will remain one of the nation’s fastest-growing metros for both employment and population, fueled by an influx of young professionals and large-scale corporate commitments. High-profile future developments, such as Samsung’s $17 billion semiconductor plant in Taylor and Tesla’s 1.4 million-square-foot battery facility in East Austin, continue to bolster local economies and housing demand. Developers are counting on these dynamics to aid leasing velocity for the roughly 24,300 units slated to come online this year. Considering the size of this year’s delivery slate, concessions usage, which rose last year, should continue to be frequent among newly built properties. For that reason, meaningful rent growth is unlikely to resume until late 2025. As the supply wave crests early in the year, demographic tailwinds and steady in-migration should maintain demand, even as vacancy battles elevated inventory longer term. However, supply-side pressure should ease, as a broad pullback in multifamily permitting is materializing.
TO READ THE FULL ARTICLE
