Q225 Austin Multifamily Market Report

Market Overview

In Q2 2025, Austin’s multifamily market showed signs of recovery from oversupply, with 6,565 units absorbed in the quarter—outpacing Q1 and driving the year-to-date absorption toward a projected 15,000 units by year-end. Class A units accounted for 85 percent of total absorption in the past year, underlining the strength of premium demand. Rents declined 3.8 percent year-over-year, the largest drop nationally, with notable declines in suburban areas and a modest 2.8 percent increase in downtown. The vacancy rate stood at 15.1 percent, while 18,278 units remain under construction—a still sizable pipeline supporting future supply pressure.

About Matthews

Matthews Real Estate Advisors is a boutique commercial real estate firm known for delivering data-driven, regional market intelligence. Their multifamily market reports provide detailed insights into absorption, rent trends, vacancy metrics, and development activity to support strategic decision-making for investors, developers, and owners.