Austin Q2 Multifamily Market Report: Rents Rise as Vacancy Tightens at Midyear
Highlights:
- The Austin multifamily market demonstrated significant improvement during the second quarter, with a rise in absorption supporting tightening vacancy and a steep acceleration in quarterly rent growth.
- Vacancy ended the second quarter at 6.9 percent, falling 40 basis points from the first quarter. Despite the recent improvement, the vacancy rate is still up 100 basis points year over year.
- Asking rents jumped 3.7 percent during the second quarter, bringing the average to $1,310 per month. Current rental rates are nearly identical to figures from one year ago.
- After a strong start to the year, sales velocity slowed by approximately 10 percent during the second quarter. Prices are on the rise, with the median price reaching $190,500 per unit through the first half of this year, while cap rates have averaged 4.4 percent.
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