Austin Multifamily Report – July 2024
Demand is playing catch-up with supply in Texas' capital.
Austin’s multifamily fundamentals were a mixed bag in the second quarter of 2024, due to the continued high influx of new supply. Some 60,000 units have come online in the metro since 2020 and despite strong demand and population growth, supply outperformed rent growth and occupancy. On a year-over-year basis through May, Austin advertised asking rents contracted 5.8 percent, to $1,620, while the national rate rose 0.6 percent, to $1,733. Meanwhile, occupancy declined to 92.9 percent in April, while the national average stayed flat, at 94.5 percent.
In the 12 months ending in March, Austin’s employment market expanded 2.8 percent, or 28,800 jobs, marking the second-best performance among Yardi Matrix’s top 30 metros. Unemployment stood at 3.0 percent in April, surpassing the U.S. (3.9 percent), the state (4.0 percent) and all other major Texas metros. Two sectors underperformed—information (down 2,900 jobs) and professional and business services, which remained flat. Government (7,300 jobs) and education and health services (7,000 jobs) led job gains.
Developers delivered 5,499 units in 2024 through May and had another 54,722 under construction. While record deliveries are expected this year, new construction shows signs of softening. Investment activity remained tepid, with transaction volume at $344 million in May, and the per-unit price down 17.8 percent year-over-year, to $148,454, trailing the $176,968 U.S. figure.
