Austin Q4 Multifamily Market Report: Business Development Bolsters Investor Confidence in Austin
Highlights:
- The Austin, Texas, multifamily market was impacted by an active pace of supply growth, which dragged on market fundamentals in a year filled with economic volatility. Conditions are forecast to improve significantly in 2021, as businesses reopen and consumers release pent-up demand.
- Apartment vacancy in Austin rose 50 basis points in the fourth quarter and the figure spiked 110 basis points in 2020. The rate ended the year at 6.6 percent.
- Following more than a decade of consistent growth, apartment rents recorded a pullback in 2020. Asking rents in Austin declined 2.8 percent, ending the year at $1,266 per month. Areas located in and near the urban core recorded the most significant rent contractions, mirroring nationwide trends.
- The Austin investment market closed the year on an upswing. Transaction activity spiked in the fourth quarter while sales prices rose during the same time. Cap rates were mostly stable throughout the year.
