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Austin Multifamily

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Austin Multifamily recorded more than $2 billion in sales volume in 2019, for a third year in a row. Given Austin’s healthy demographics—the metro has added the third most 20–34-year-olds since 2010 of any major market—and strong economic performance, Austin has been one of the most compelling markets in the southern tier of the country, at least prior to the pandemic.

 

Market Highlights

SALES Austin Multifamily recorded more than $2 billion in sales volume in 2019, for a third year in a row. Given Austin’s healthy demographics—the metro has added the third most 20–34-year-olds since 2010 of any major market—and strong economic performance, Austin has been one of the most compelling markets in the southern tier of the country, at least prior to the pandemic. 2020 came in slightly lighter at around $1.7 billion in sales volume. That’s just recorded volume—Texas is a non-disclosure state, where buyers and sellers don’t have to disclose a purchase price. Recent volume was driven by investment across Austin, led by Austin’s northern and northwest suburbs, as well as Apple’s announcement of a second campus that could house up to 15,000.

RENT Either prompted by some of the largest economic wins in 2020, or the market’s strong single-family market, Austin’s average rents have now seen more growth since the start of 2020 than the national average. That’s the first time the market has achieved that since late March of last year. While quarter over quarter data is typically volatile, it’s worth noting that no other major market in the country has seen its rents rebound as fast as Austin.

CONSTRUCTION The coronavirus has interrupted construction across asset classes in Austin. Those delays are a welcome sign for many existing landlords as about 14,000 units are currently underway, or about 6% of current inventory. That amounts to the 6th highest figure nationally among markets with more than 60,000 units.


Leta Wauson
Director of Research
leta.wauson@naipartners.com
tel 713 275 9618

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