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East Austin's multifamily market is at a genuine inflection point — and a compelling one for developers with a 12-24 month horizon. The submarket absorbed the most aggressive supply wave in the nation, with inventory nearly doubling to 30,571 units, and is emerging on the other side with vacancy falling for the first time since 2021. The near-term picture is still tenant-favorable. Concessions of 6-12 weeks free are widespread across Class A product in 78702 and 78725, and net effective rents are 10-20% below asking. Rents are down 4.5% YoY metro-wide — the steepest decline among major U.S. markets. But the leading indicators have turned: absorption outpaced deliveries in H2 2025 for the first time in three years, and construction starts have collapsed 73%. Only 10,000 units are expected to deliver metro-wide in 2026 vs. 31,000 in 2025. The structural thesis for East Austin multifamily is as strong as ever. The submarket's 55%+ renter population (20 points above national average), median age of 34, and walkable lifestyle positioning continue to draw in-migration. AvalonBay's $619M Texas portfolio acquisition — with $187M allocated to Austin — signals institutional conviction that the rent correction is a buying opportunity, not a structural decline. By late 2026, analysts project vacancy retreating to 6-7% and rents returning to positive growth.
Average rent: $1791/SF. Range: $825 - $2995/SF. YoY growth: -4.5%.
Vacancy rate: 14.2%. Trend: falling. East Austin multifamily vacancy peaked near 15% in early 2025 after the submarket's inventory nearly doubled — up 92.5% to 30,571 units, making it the highest-growth apartment submarket in the nation. Vacancy has since begun declining as absorption caught up to supply in H2 2025. The correction is sharpest in Class A, where 65% of complexes are offering 6-12 weeks free rent on new leases. Class B and C product has held up better, with value-add assets actually posting positive rent growth (+1.7% and +3.4% respectively). The supply cliff is imminent: construction starts collapsed 73% and 2026 deliveries will drop to ~10,000 units metro-wide vs. 31,000 in 2025. Vacancy is expected to retreat to 6-7% by late 2026.Net absorption: 19,000 SF.
Average cap rate: 5.6%. Range: 4.7% - 6.8%.
Under construction: 15,900 SF. Planned: 10,153 SF. Deliveries next 12 months: 10,153 SF.
Population: 2,607,298. Growth rate: 1.8%. Median household income: $105,998. Job growth: 1.4%.
Austin, TX
Avg Rent
$1791.00
/Unit-4.5% YoY
Vacancy
14.2%
Avg Cap Rate
5.6%
4.7–6.8%Net Absorption
19K SF
East Austin's multifamily market is at a genuine inflection point — and a compelling one for developers with a 12-24 month horizon. The submarket absorbed the most aggressive supply wave in the nation, with inventory nearly doubling to 30,571 units, and is emerging on the other side with vacancy falling for the first time since 2021.
The near-term picture is still tenant-favorable. Concessions of 6-12 weeks free are widespread across Class A product in 78702 and 78725, and net effective rents are 10-20% below asking. Rents are down 4.5% YoY metro-wide — the steepest decline among major U.S. markets. But the leading indicators have turned: absorption outpaced deliveries in H2 2025 for the first time in three years, and construction starts have collapsed 73%. Only 10,000 units are expected to deliver metro-wide in 2026 vs. 31,000 in 2025.
The structural thesis for East Austin multifamily is as strong as ever. The submarket's 55%+ renter population (20 points above national average), median age of 34, and walkable lifestyle positioning continue to draw in-migration. AvalonBay's $619M Texas portfolio acquisition — with $187M allocated to Austin — signals institutional conviction that the rent correction is a buying opportunity, not a structural decline. By late 2026, analysts project vacancy retreating to 6-7% and rents returning to positive growth.
Average
$1791.00
/Unit
Low
$825.00
/Unit
High
$2995.00
/Unit
Vacancy Rate
14.2%
Net Absorption
19K SF
12 months (2025, units)
East Austin multifamily vacancy peaked near 15% in early 2025 after the submarket's inventory nearly doubled — up 92.5% to 30,571 units, making it the highest-growth apartment submarket in the nation. Vacancy has since begun declining as absorption caught up to supply in H2 2025. The correction is sharpest in Class A, where 65% of complexes are offering 6-12 weeks free rent on new leases. Class B and C product has held up better, with value-add assets actually posting positive rent growth (+1.7% and +3.4% respectively). The supply cliff is imminent: construction starts collapsed 73% and 2026 deliveries will drop to ~10,000 units metro-wide vs. 31,000 in 2025. Vacancy is expected to retreat to 6-7% by late 2026.
Avg Cap Rate
5.6%
Cap Rate Range
4.7% – 6.8%
| Address | Price | $/SF | Cap Rate | Date | SF | Class |
|---|---|---|---|---|---|---|
| Rise 120, Georgetown | $50,000,000 | $220000 | — | 2026-01 | 227 | A |
| Wildcreek Apartments, 1511 Faro Dr | $32,000,000 | $138000 | — | 2025-12 | 232 | C |
| Veranda, 7205 E. Ben White Blvd | $78,000,000 | $215000 | — | 2025-09 | 362 | A |
| Cielo I + II + Retreat at Wolf Ranch (3-property portfolio) | $187,000,000 | $218000 | — | 2025-03 | 857 | A |
Under Construction
16K SF
Planned
10K SF
Deliveries (12mo)
10K SF
Trinsic Cesar Chavez
Undisclosed
310 units at 2915 E. Cesar Chavez St, East Austin.
Airport Crossing
NRP Group
256 units near Austin-Bergstrom Airport, East Austin.
FiveOne
Undisclosed
344 units in East Austin. Construction start Jan 2026.
Velocity Phase 1
Presidium Group
307 units of 2,700-unit master plan on 314 acres in Del Valle / SE Austin.
OHT Partners Project
OHT Partners
360 units + office at 7th & Pleasant Valley, East Austin.
Acquired 857 Austin-area units for $187M as part of $619M Texas portfolio acquisition from BSR REIT. Major new institutional entrant.
March 2025
Top-10 national MF developer building Airport Crossing (256 units) in East Austin. Cleveland-based firm expanding Sun Belt footprint.
2025
Colorado-based investor entering Austin via Wildcreek Apartments (232 units, 1984 vintage, 63% occupied) — deep value-add play in East Riverside corridor.
December 2025
Breaking ground on Velocity, a 2,700-unit master-planned district on 314 acres in Del Valle / SE Austin — one of the largest MF developments in the metro.
2025
Population
2.6M
Growth Rate
1.8%
Median Income
$106K
Job Growth
1.4%
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