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Market Report

Austin Multifamily Investment Forecast

2020 Outlook

Economic Core Shifting to North Austin Where ‘Silicon Valley’ Transplants Locate

 

Expanding tech presence ripples to all echelons of housing. The rapid job creation trend of this cycle faced headwinds in 2019, when the unemployment rate started the year below 3 percent. A diminished available labor supply is forcing employers to moderate hiring; however, the technology segment is maintaining its vigorous expansion in northwest Austin. Numerous Bay Area tech companies are establishing strongholds here, highlighted by Apple’s ongoing extension into a $1 billion facility. These companies continue to bring high-wage staff members into the metro, who often look toward luxury rental housing options because of their location, amenities and flexibility. Consumer spending is also being enhanced as more high-wage jobs emerge in Austin, boosting the presence of retailers and service industry employers. The workforce tied to these industries will aid Class B/C leasing, holding vacancy tight in the 4 percent range.

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