Multi-Family

Multi-Family

The opportunities for multifamily property buyers and property management companies will remain positive in 2022. Austin is one of the hottest cities for multifamily real estate this year. Sales and listings are up, and Austin rent prices are rising. Other favorable conditions are low unemployment, rising wages, low vacancy, and a strong economy. As a result, Austin, Dripping Springs, Bastrop, and Lakeway have positive fundamentals for multifamily housing investment. 

A report from CoStar Group suggests while multifamily rents are up in nearly every major metro area coming out of the pandemic, Austin's rents are trending toward unprecedented levels of growth this year. According to CoStar Group, Austin is on pace for approximately 20.1 percent year-over-year rent growth by the end of 2021, with rents increasing from $1,301 to $1,562 per month. Nearly every developer we speak with has shared that their company is executing more than 50 or 60 leases per month and can't seem to deliver units quickly enough to keep up with demand. The previous high-water mark for annual multifamily absorption in Austin was just over 11,200 units; 2021, absorption is trending toward over 15,500 units.