Austin Q1 Multifamily Market Report: Investment Activity Up, Sales Prices on the Rise
Highlights:
- Vacancy likely hit its post-COVID peak in Austin during the first quarter, with conditions likely to improve as the year goes on, and absorption regains momentum. Hiring is forecast to be particularly strong in the second half of the year, fueling renter demand for apartments.
- Vacancy rose 70 basis points during the first quarter, reaching 7.3 percent. Year over year, the rate is up 140 basis points.
- As vacancy has pushed higher, rents have dipped as operators focus on retaining renters. Year over year, area asking rents are down 4 percent to $1,263 per month.
- Investment activity in Austin is off to a stronger start than the pace that was established in both 2019 and 2020. Prices rose, with the median price reaching $185,200 per unit, while cap rates held steady at approximately 4.5 percent.
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