Austin Multifamily Report – Fall 2019
- Nov 12, 2019
Austin’s strong economic performance and demographic expansion are the main drivers of the multifamily market’s sustained growth. Rent gains in the metro, up 5.0 percent year-over-year through August, ranked fourth among the country’s major metros. The average rent rose to $1,416, trailing the national U.S. rate by only $56.
Employment growth was diverse, and despite softening to 2.2 percent year-over-year through June, the rate remained well above the national average. The metro gained 22,800 jobs in the 12 months ending in June, with the professional and business services sector (7,600 jobs) leading growth. Office-using jobs accounted for half of Austin’s employment gains, with the addition of 11,400 jobs. The metro is the 14th most congested in the U.S., but extensive work on its infrastructure is underway, boosting the trade, transportation and utilities sector by 4,700 jobs. Mining, logging and construction rounded out the top three, with the addition of 3,500 jobs.
More than 5,800 units were delivered in 2019 through August, all upscale. Austin is poised for a new cycle high in deliveries, as its pipeline consists of some 22,000 units, 13,500 of which are slated for completion by the end of the year. More than $1 billion in multifamily assets traded by August, with a per-unit price of $157,313. Yardi Matrix expects rents to rise 5.1 percent in 2019.