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Austin multifamily rents rise for first time in three years

Effective rents increased 1.8% in the second quarter to $1,316 per month as vacancy fell from 15.8% in Q3 2024 to 12.3% this year, after years of oversupply and concessions.

Reported · Written up by our desk · Residential

Austin’s multifamily market is showing its first clear rent growth in three years, with effective rents rising in the second quarter after a prolonged oversupply that had pushed landlords into concession-heavy leasing.

According to a Northmarq report, effective rents increased 1.8% to $1,316 per month in Q2 after 12 consecutive quarters of declines. Market analysts cited by Bisnow expect steady rent growth over the next one to two years as excess inventory is absorbed.

Bisnow reports that developers delivered apartment inventory rapidly between 2020 and 2025, lifting supply by about 33% and contributing to falling rents. A Matthews report cited in the story says vacancy peaked at 15.8% in Q3 2024, then declined to 12.3% in the second quarter, while effective rents were still down 3.9% year over year.

Analysts also pointed to slowing rent declines, with the rate of decline dropping to 7.4% from the prior year, as new deliveries cool and demand strengthens. Bisnow notes that the vacancy trend and the shift toward improving rent performance are key indicators investors have been watching.

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