Despite cooling in the past year, Austin’s multifamily market is witnessing a resurgence in demand. The city continues to showcase economic vigor, driven by a thriving job market and consistent growth. By the end of the third quarter, 42,804 housing units were in development, with 32,690 expected to be completed within a year. This surge may introduce temporary market challenges, yet the strong annual net absorption signals a resilient market. Particularly in East Austin, about 5,108 units are projected to be completed over the next 4 quarters. Even with potential market fluctuations, any impact on rent and occupancy is expected to be short-lived. Austin’s suburban growth, driven by accessibility, affordability, and job opportunities, plays a pivotal role in this resurgence. Ranking third nationally for units under construction relative to inventory, developers remain optimistic about Austin’s long-term prospects, gearing up for potential launches in 2024 and 2025.
Sources: RealPage; BLS; MSCI; The Council for Community And Economic Research (C2ER)