Austin Multifamily Report – November 2024
A wave of new supply presents some challenges for this vibrant market.
High supply continued to affect Austin multifamily, even as rental demand remained healthy. Advertised asking rents slid 10 basis points on a trailing three-month basis through September, to $1,614. Year-over-year, the rate fell 4.9 percent, the largest decline among Yardi Matrix’s top 30 metros, but the figure was still an improvement compared to a year ago. Meanwhile, the national rate rose 0.9 percent on a yearly basis, to $1,750. Austin’s occupancy in stabilized properties fell 20 basis points year-over-year, to 93.1 percent, with the working-class segment taking a significant hit.
Austin job growth moderated to 2.0 percent, or 18,900 net positions, in the 12 months ending in July. However, the metro still led the U.S. average by 70 basis points. Government (8,000 jobs) and leisure and hospitality (5,200 jobs) led gains, while professional and business services and information lost 7,500 positions combined. Meanwhile, Austin unemployment stood at 3.4 percent as of September, better than the U.S. and Texas (both at 4.1 percent), according to preliminary Bureau of Labor Statistics data.
Austin’s historic pipeline remained its top headline-worthy metric, with 15,666 units delivered in the first three quarters of 2024 and another 50,248 apartments under construction as of September. Transaction activity, however, slowed down. Just $740 million in assets traded year-to-date through September, a little over half the volume recorded during the same months of 2023.
