Austin Multifamily Report – March 2025
Occupancy slid slightly and new supply continues to pour in.
Austin’s multifamily fundamentals showed little change at the start of 2025, posting steady employment growth and decreasing rates. Advertised asking rents declined by 0.7 percent, on a trailing three-month basis through January to, $1,554, down 5.4 percent year-over-year, while the U.S. rate inched down 0.1 percent, on a T3 basis to, $1,746 and remained positive year-over-year, at 0.8 percent. The metro’s occupancy rate in stabilized properties fell 20 basis points year-over-year, to 92.7 percent in January, well below the 94.5 percent national average.
Despite softening, Austin’s employment growth continued to outperform the U.S., up 1.6 percent, or 21,200 net jobs, year-over-year through November. The highest job gains were posted in government (6,300 jobs), education and health services (6,000 jobs) and leisure and hospitality (4,500 jobs). Three sectors lost 6,700 jobs combined. Meanwhile, the metro’s unemployment rate was 3.1 percent in December 2024, according to data from the Bureau of Labor Statistics, below the U.S. (4.1 percent), the state (4.2 percent) and all other major Texas markets. Among the projects that will have a significant impact on the local economy is the expansion and redevelopment of the Austin Convention Center, slated to begin this year and be completed by 2029.
Developers delivered 2,353 units in January 2025 and had another 40,486 units underway. Sales remained slow into 2025, after 2024 totaled $819 million–the lowest volume in the last decade.
