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Market Report

Austin Multifamily Market Report

3Q 2022

Vacancy Ticks up to a More Viable Long-Term
Level as Residents Adapt to Economic Trends

 

Rent gains and inflation impact living choices. Prior to the pandemic, Austin had an average effective rent of about $1,300 per month. That measure approached $1,700 per month in the second quarter of 2022, with rapid growth driven by in-migration, rising homeownership costs and very low apartment availability. The new cost-of-living reality amid widespread inflation may be coaxing some Austinites to decline lease renewals, find roommates or relocate to more affordable areas. Hiring in high-wage industries downtown boosted Class A and B average rents here by 22 and 34 percent, respectively, since 2019. Local demand is being pushed toward low- and mid-tier rentals in less costly adjacent areas like Riverside or South Austin, where CBD amenities and jobs are still accessible. Other areas with below market average Class A/B rents like Pflugerville-Wells Branch and Far West Austin may also benefit from this trend.

 

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