Austin Multifamily Market Report
Household Growth Necessitates New Apartments,
But Construction Creates Near-Term Headwinds
In-migration drives renter demand. Across the last two decades, the number of households in the Austin metro has nearly doubled. Household formation is likely to continue at an elevated pace going forward, as the market expects over 44,700 new residents on net in 2023. Elevated in-migration led to rapid price appreciation in single-family homes during the health crisis, but values have begun to regulate as more houses are listed for sale. Still, the regionally high cost of homeownership will likely encourage many renters to stay in apartments. While heightened inventory growth has generated headwinds for vacancy, and is expected to push the rate to its highest mark since 2010 by year-end, renter demand is apparent. Net absorption has been positive in all but one quarter for the last 10 years.