Austin Multifamily Market Report
The Growing Young Adult Populace
Benefits Rentals Amid Ownership Barriers
Higher-quality segments post remarkable rent growth. The burgeoning tech scene, favorable climate and attractive lifestyle are drawing a horde of new residents. By the end of 2022, the two-year in-migration total is projected to surpass 60,000 new Austinites, assisting in a 23,500 person boost to the age 20-34 cohort. Despite the influx of young people, who typically have less financial stature, the median household income rose 3 percent last year amid growth in higher-wage industries; however, this paled in comparison to the 29 percent jump in the median home price last year, and hurdles will heighten as mortgage rates climb. In light of this, the sizable and growing young adult pool is increasingly opting to rent, favoring higher-quality units with amenities. Class A and B vacancy each fell 290-plus basis points year-over-year in March, producing rent hikes above 20 percent.