Austin Multifamily Market Report
2024 Investment Forecast
Corporate Relocations Promote Investment
Even Amid Record Completion Slate
Supply wave counterbalanced by increasing renter base. Austin’s cohort of age 20- to 34-year-olds will grow by 1.8 percent in 2024, the fastest pace among major U.S. markets. This demographic is traditionally prone to renting while saving for a first-time home purchase, a trend prolonged locally due to the metro’s median home price, which has increased by more than $100,000 since 2019. Austin’s renter pool is also augmented by consistently strong in-migration, a trend unlikely to end in the near future as companies like Tesla, Apple and Oracle make the metro home. Even so, multifamily supply additions are outpacing demand on a short-term basis. Overall vacancy will hit a 20-year high in 2024, largely a result of this development dynamic. The supply wave is likely reaching its peak, however, as new starts have fallen amid rising material, labor and borrowing costs. This dynamic will allow supply and demand to realign long-term. Total occupied stock will also reach a record high by the end of 2024, illustrating how the elevated renter demand observed in recent years is likely to continue.