Austin, TX Multifamily Market Report | Matthews | Q4 2025

Market Overview

Austin absorbed one of the largest multifamily supply waves in U.S. history heading into Q4 2025, and the market is beginning to show it. Vacancy declined to 12.0%, the first meaningful pullback since 2023, as annual demand reached 22,591 units. Asking rents held near $1,500 per unit while construction starts fell sharply, pulling units under construction steadily lower. Investment sales remained selective but gained footing, with cap rates around 5.4% and pricing holding firm in high-quality corridors. With deliveries decelerating and absorption turning positive, the supply-demand correction is underway, pointing toward rent growth resumption by 2027.

About Matthews

Matthews Real Estate Investment Services is a national commercial real estate brokerage and advisory firm serving multifamily owners, investors, and developers across major U.S. markets. Their Austin, TX Q4 2025 multifamily market report tracks vacancy, rent growth, cap rates, and absorption to help clients assess market conditions and refine investment timing. To read the full report, click here.