Austin absorbed 6,284 units in Q2 2025—more than double the pre-pandemic average and the second-highest quarterly total on record—highlighting that recent softening fundamentals are not demand-driven, but rather the result of an unprecedented supply wave.
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While new supply continues to outpace demand, the development pipeline is contracting. Under-construction inventory has dropped to 6.9% of total stock—down sharply from the peak of nearly 20% of inventory. Starts also totaled just 4,000 units in the first half of 2025, marking the slowest H1 pace since 2019.
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Rents declined 4.0% year-over-year, but the modest quarterly drop of just -0.2% suggests that downward pressure is easing. Upper-tier properties and Downtown Austin posted slight gains, signaling early signs of stabilization.
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MARKET OUTLOOK
Austin’s apartment market is showing signs of stabilization, with demand returning to long-term norms and construction activity slowing...
