Austin Multifamily Market Report

Austin faces substantial supply challenges. Over the last decade, the city has welcomed approximately 442,900 new residents due to in-migration, many of whom fall within the 20 to 34 age bracket that tends to rent. This surge has created an extraordinary demand for housing, prompting builders to heighten construction. Consequently, 6 percent of all new completions in the U.S. this year will be in Austin. Although this increase in supply is beneficial in the long run, it has caused short-term issues. In the first quarter, Austin experienced the largest rent decrease among major U.S. markets and is expected to maintain high vacancy rates for the rest of 2024. However, rents should start to see a recovery this year, and the number of occupied multifamily units is anticipated to reach a record high.