AUSTIN, Texas — A new report shows Austin continues to build more apartments than any other large metro despite dramatic changes to the nationwide rental market.
The report from Apartment List shows that in 2023, there was a 16% decline nationwide in permits issued for new multifamily units compared to 2022. It also adds that 2024 would see an 11% decline from 2023 at its current pace.
However, permitting is just a part of the process. The report shows that despite a slowdown in permits being issued, completions are still rising as construction times get longer. In 2022, the average time for a multifamily project to be completed took 17 months.
Austin has been the face of the construction boom, leading the way in multifamily permitting per capita for the last seven years.
Last year, Austin's pace for multifamily permits was 61% higher than second place Raleigh, North Carolina. The report states that while Austin is seeing a dramatic slowdown in permits for 2024, it's still on pace for the most new permits per capita.
In January, real estate experts predicted Austin renters would continue to pay steep prices, but rents in the Austin metro have dipped by 7%, according to the report. The dip is also the largest decline of any large metro, which the report attributes to new construction keeping up with the influx of new renters.
The dramatic shifts in the rental market won't last. The report expects fewer apartments to be completed in 2025, which could lead demand to outpace supply again.
Boomtown is KVUE's series covering the explosive growth in Central Texas. For more Boomtown stories, head to KVUE.com/Boomtown.
