Metro Reports Multifamily Market Real Estate Trends

Austin Multifamily Market Report (March 2022)

Austin Multifamily Market Report March 2022
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Demand Boosts Rents, Occupancy, Supply

Austin sits at an inflection point between midsize city and worldclass tech hub, which has its advantages and disadvantages. On one hand, it boasts a strong economy that helped it recover faster from the pandemic’s woes, but on the other it faces a deepening housing affordability issue, as developers struggle to work with an outdated land code to keep up with elevated demand. Rent growth mirrors the robust demand, up 0.6% on a T3 basis through January, to $1,694, as does the occupancy rate in stabilized properties, up 230 basis points year-over-year through December, to 95.8%.

Austin is one of the few metros that has managed to recover jobs lost during the pandemic. The unemployment rate stood at 2.9% in December, surpassing both the state (5.0%) and the U.S. (3.9%) averages. The job market posted a 7.4% expansion, or 85,800 jobs, in the 12 months ending in November, outperforming the 4.6% national rate. Professional and business services led growth (29,900 jobs), sustained by the plethora of tech firms that moved into the metro. With several billion-dollar projects underway, Austin has strong prospects for a sustained economic expansion.

Developers delivered 1,075 units in January 2022 and had 37,813 units under construction, continuing the accelerated pace of deliveries, which last year marked the best level of the decade. Multifamily sales recorded a new high of $4.3 billion in 2021.

Read the full Matrix Multifamily Austin Report-March 2022

About the author

Anca Gagiuc

Anca Gagiuc brings more than a decade of experience within the real estate industry. She is a senior associate editor with Commercial Property Executive and Multi-Housing News who also writes monthly multifamily reports at Yardi Matrix.

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