Austin Q2 Multifamily Market Report: Austin’s Ability to Attract Companies Supports Market Outlook
Highlights:
- The Austin multifamily market posted strong performance during the first half of 2020, despite economic volatility. Developers have continued to bring new units to the market, but absorption has been positive and is expected to gain momentum in the coming months.
- The local multifamily vacancy rate ended the second quarter at 5.9 percent, identical to the figure in the first quarter. Year over year, vacancy has ticked up just 10 basis points.
- Asking rents finished the second quarter at $1,314 per month, 2.8 percent higher than one year ago. Annual rent growth has averaged 4.9 percent during the past five years.
- The Austin investment market produced fairly steady results in the first half of the year. Sales velocity slowed with uncertainty in the greater economy, but fundamentals remained strong. Cap rates have averaged 4.9 percent, nearly identical to the average in 2019.
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