Austin Multifamily Market Report
Demand Tailwinds Emerge for Downtown and University-Adjacent Rentals
Return to normalcy a boon for urban demand. Last year, renter preferences recalibrated after closures and restrictions reduced the allure of living downtown. Now, as entertainment districts like Sixth Street have reopened alongside museums, theaters and other urban amenities, more people are again choosing to live in the core. Additionally, students and staff at the University of Texas are searching for nearby residences, with current plans calling for at least 90 percent of classes to be held in person this fall semester. Furthermore, several law firms and insurance agencies signed on for downtown offices recently, and employees of these companies should boost the leasing of upper-tier rentals in the core. Renewed demand allowed vacancy to fall 400 basis points year over year in the Downtown-University submarket to 3.9 percent in June, fueling a nearly 10 percent annual rent surge.