Cheryl Higley discusses oversupply in Austin multifamily market with REJournals
AUSTIN (April 16, 2024) — According to ALN Apartment Data, a national and local apartment data collector, Austin is experiencing an oversupply of available units in their multifamily market. With over 22 years of experience in multifamily financing, Cheryl Higley, managing director of Debt + Equity in Northmarq’s Austin office, says this issue was mostly driven by extensive new construction in recent years. “This oversupply has led to vacancy rates reaching a 20-year high,” said Higley.
In a recent article for REJournals, Higley shared her thoughts on the current challenges in the Austin multifamily market. “…There are indications that the market will gradually balance out in the long run.” As more young adults are moving to Austin, Higley believes this will help balance out the market.
In response to these market conditions, investment strategies are also changing. Owners are taking a more strategic view as their loans are maturing, evaluating between a refinance or sell scenario,” Higley said. ”We are seeing more owners adopt a ‘wait-and-see’ approach until market conditions become more favorable.”
Despite the changes and challenges in the Austin multifamily market, there may be opportunities for growth and a “new norm.”
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