Austin Multifamily Update - Q2 2025

The Austin multifamily market is experiencing a period of adjustment in early 2025, influenced by recent oversupply and shifting demand dynamics.​

Key Market Indicators:

• Occupancy Rates: Stabilized properties report an occupancy rate of approximately 92.7%, slightly below the national average of 94.5%. ​
• Rent Trends: Average asking rents have decreased by 5.4% year-over-year, with the current average at $1,554. ​
• Vacancy Rates: The vacancy rate has risen to 15.3%, marking the highest level in over a decade.
• New Supply: As of January 2025, 2,353 new units were delivered, with an additional 40,486 units under construction. 

Market Dynamics:
The influx of new units has outpaced absorption, leading to increased vacancies and downward pressure on rents. This has prompted property owners to offer concessions, such as free rent and waived fees, to attract tenants. Despite these challenges, Austin's strong employment growth—up 1.6% year-over-year—and ongoing in-migration support long-term demand for multifamily housing. ​

Looking Ahead:
Analysts anticipate that as construction slows and the market absorbs existing inventory, occupancy rates will stabilize and rent growth may resume by late 2025 or early 2026.