Austin Q2 Multifamily Market Insights: Market vacancies reach lowest level since 2014
Highlights:
- Strong renter demand for apartments in Austin drove down vacancy rates and fueled rent growth during the second quarter. Improving conditions carried over into the investment market where transaction activity gained momentum and prices rose.
- After improving throughout 2021, the vacancy rate continued to decline during the first half of 2022. Since the end of last year, area vacancies have improved by 70 basis points, falling to 4.6 percent. Year over year, the vacancy rate has tightened by 230 basis points.
- Rents continued to trend higher in Austin; asking rents are up 15.7 percent from one year ago, ending the second quarter at $1,516 per month. Year to date, asking rents have pushed 4.6 percent higher.
- Investment activity surged in the second quarter, rising more than 40 percent from the first three months of the year. In transactions where pricing was available, the median price in 2022 has reached $260,400 per unit, while cap rates averaged 3.7 percent.
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