Austin Multifamily Market Report
Vacancy Ticks up to a More Viable Long-Term Level
as Residents Adapt to Recent Economic Trends
Rent gains and inflation impact living choices. Prior to the pandemic, Austin had an average effective rent of about $1,300 per month. That measure approached $1,700 per month in the second quarter of 2022, with rapid growth driven by in-migration, rising homeownership costs and very low apartment availability. The new cost-of-living reality amid widespread inflation may be coaxing some Austinites to decline lease renewals, find roommates or relocate to more affordable areas. Class C vacancy is exceptionally tight in locations with below-average rents, like Far South and North Central Austin. Meanwhile, hiring in high-wage industries downtown boosted Class A and B average rents here by 22 and 34 percent, respectively, since 2019. Local demand is being pushed toward low- and mid-tier rentals in less costly adjacent areas like Riverside or South Austin, where CBD amenities and jobs are still accessible.