Austin Multifamily Report – November 2023

Rents were down going into the final quarter of 2023.

Austin rent evolution, click to enlarge

Austin rent evolution, click to enlarge

Austin rents entered their third consecutive month in negative territory, as the market continues to see rates moderate. Rents across the metro were down 0.7 percent on a trailing three-month basis, as of September. Meanwhile, the U.S. figure also went into negative territory, at -0.1 percent. On an annual basis, however, Austin rates were still up 0.5 percent, even with headwinds created by robust incoming stock.

Austin sales volume and number of properties sold, click to enlarge

Austin sales volume and number of properties sold, click to enlarge

As of July, the metro’s unemployment rate stood at 3.8 percent, according to data from the Bureau of Labor Statistics. The figure was ahead of the Texas average (4.1 percent) as well as other metros in the state, such as Houston (4.8 percent), San Antonio (4.2 percent) and Dallas-Fort Worth (4.1 percent). Austin’s job market expanded 4.3 percent, or 39,500 positions, in the 12 months ending in July. Only the information sector recorded losses. According to the Austin American-Statesman, Accenture, an Irish-American professional services company plans to cut 350 jobs in Austin, marking the third time this year that the corporation has contracted its Central Texas workforce.

Austin. Photo by Sean Pavone/iStockphoto.com

Austin. Photo by Sean Pavone/iStockphoto.com

The supply wave has not abated and in the first nine months of the year, 7,346 units came online across Austin. Developers had 61,051 units under construction, while more than 100,500 units were in the planning and permitting stages. Through September, Austin saw $1.3 billion in multifamily transactions, a significant drop compared to the same period in 2022.

Read the full Yardi Matrix report.

You May Also Like