Austin Multifamily Market
| Average Rent: | $1,267 |
| Average Rent (Price/SF): | $1.47 |
| Average Occupancy (%): | 91.5% |
Density issues brought on by COVID-19 accelerated the trend of multifamily investors favoring non-major markets, which received 75.8% of investment dollars in 2020, a record high. Austin ended 2020 with $3.8 billion in transaction volume with multifamily investment allocation 68.4% of total commercial real estate trades, a 24.1% increase from 2019. Multifamily rent collections have been resilient since the pandemic began, never dropping below 91.7% in 2020. Austin outperforms the nation and Texas with 96.5% of rent payments collected for 4Q20 and has steadily remained over 95% throughout the year. While rent growth has been stifled in Austin due to the pandemic, the city saw just a 0.01% drop in effective rent quarter-over-quarter to end the year, indicating the beginnings of a V-shaped recovery heading into 2021. Austin’s rental market continues to outperform Texas and the southwestern region as a whole. Sunbelt markets continue to drive the highest demand and garner the most attention from multifamily investors. In 2020, Austin added 9,923 units, a 4% increase to the existing unit base – the fastest-growing inventory rate among the nation’s top 50 markets. As jobs continue to flow into the city, demand is outpacing supply and driving up home prices. Inflated pricing coupled with near non-existent housing supply levels will benefit the multifamily market as in-migration shows no signs of slowing down.
Download Austin Multifamily Market Update 4Q20San Antonio Multifamily Market
| Average Rent: | $1,007 |
| Average Rent (Price/SF): | $1.19 |
| Average Occupancy (%): | 91.2% |
Multifamily investment allocation in San Antonio was 52.4% of total commercial real estate sales in 2020. San Antonio finished 2020 with a strong fourth quarter, recording 18 transactions totaling 5,012 units with an average price per unit of $112,903. The market totaled more than $1.8 billion in sales for 2020, ranking 19th nationally. Multifamily rent collections have been resilient since the pandemic began, never dropping below 91.7% in 2020. San Antonio saw 94.5% of rent payments collected in 4Q20, which outperformed the national average of 93.8%. San Antonio had a stable fourth quarter and ended the year with total annualized returns at 1.8%, the same as the national multifamily average for 4Q20. Annualized figures show San Antonio’s demand was able to keep up with supply as 4,060 of 4,886 new units were absorbed over the past 12 months – the most favorable supply/demand metrics in Texas. After experiencing elevated levels of completions over the past decade, supply is starting to taper off in San Antonio. With its diverse employment base, San Antonio was relatively insulated from the severe pandemic-related economic downturn experienced by most of the country. Over the next year, the city is expected to recoup all of the jobs lost in March and April during the initial shutdown of 2020. San Antonio was one of the better-performing markets in Texas and is poised to capitalize on rebounding economic conditions in 2021.