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Market Report

Austin Multifamily Market Report

3Q 2023

Household Growth Necessitates New Apartments,
But Construction Creates Near-Term Headwinds

In-migration drives renter demand. Across the last two decades, the number of households on net in Austin has nearly doubled. Household formation is likely to continue at an elevated pace going forward as the metro expects over 44,700 new residents on net in 2023. Elevated in-migration led to price appreciation in single- family homes during the health crisis, but values have begun to regulate as more homes are listed for sale. Still, the regionally high cost of homeownership will likely encourage many renters to stay in apartments. While heightened inventory growth has generated headwinds for vacancy, and is expected to push the rate to its highest mark since 2010 by year-end, renter demand is apparent. Net absorption has been positive in all but one quarter for the last 10 years. 
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