Happy Thursday,

Welcome February! While the 1st week of the month we typically bring a preview of the previous month's stats, it's less reliable when falling on the 1st or 2nd due to pending data entry. So this week instead we dive into Multi-family housing and the 2024 forecasts for National and Local Commercial MF markets, tailored for Commercial investors and capital suppliers.

Additionally, the FED maintained rates in yesterday's meeting, and east Austin breaks ground on Seabrook Square a much-needed affordable MF housing development.

Whether you're a Buyer, Seller, or investor, we're here to navigate the dynamic real estate market. Your business and referrals are truly valued, and feel free to share these insightful reports!

• Luxury $3MM+
• Condos/Townhomes
• Waterfront
• Pool Properties

• New Construction
• Res Lease Austin
• New Farm & Ranch
• Commercial Lease

Seabrook Square, a multi-family development in Austin, breaks ground for 204 affordable units, fostering community inclusion and housing stability in the East MLK neighborhood.

Fed keeps rates steady, hints at potential changes in 2024. Powell sees peak in policy rate, waits for inflation control before cuts.

• Austin $750K+
• Austin <$750K
• Eanes ISD
• Hills/Lakeway
• Hays ISD
• Round Rock
• Leander ISD
• Georgetown

• Spicewood
• Dripping Springs
• Wimberley
• Comal County
• Bastrop ISD
• San Marcos
• New Braunfels
• Caldwell County

Austin Braces for Record-High Multi-Family Completion Slate



In 2024, Austin's rental market faces challenges as rising housing prices push millennials to rent longer. The city's influx of tech giants like Tesla and Apple boosts renters, but a supply surge leads to a 20-year high in vacancies. Yet, signs suggest the supply peak is near, with rising costs slowing new construction. The dynamic balance between demand and supply promises an intriguing future for Austin's real estate landscape.

Samsung factory highlights outer suburbs for buyers

Investors eye outer Austin suburbs as Samsung's $17B factory boosts job growth. Despite rising vacancies, these areas show promise, fueled by tech jobs and expanding services. Multi-property purchases are expected to surge as investors capitalize on the growing renter pool. The demand shift hints at a lucrative market in 2024, making the suburbs a hotspot for savvy buyers and investors looking to ride the wave of population influx and economic expansion.

2024 Austin Multi-Family Market Forecast

Provided By Marcus & Millichap

EMPLOYMENT: Nearly matching last year’s additions, Austin will welcome 35,000 jobs on net in 2024. This brings total employment to roughly 40 percent above where it was a decade prior.

CONSTRUCTION: Metro inventory will grow by an unprecedented 8.9 percent, the largest expansion among major U.S. markets, reaching a local record-high completion slate for the fifth consecutive year.

VACANCY: The sudden and persistent acceleration in Austin’s stock has placed significant upward pressure on vacancy, despite continued renter demand. By year-end, the metric will reach 7.9 percent.

RENT: The average effective rent in Austin fell by 1.7 percent in

2023, a trend that will reverse in 2024. By December, the mean effective rent will inch up to $1,650 per month.

Retail, Business,

Mix-Use & Office

Residential Income,

Multi-Fam & Apartment

Hotels, Warehouses,

Flex and Industrial

Land Dev, Site-Plan,

Agriculture & Other

In 2024 the multifamily market is expected to thrive amid inflation tapering, but a new supply surge will soften rent growth. Record-breaking 2024 openings impact rents, slowing adjustments. As the market absorbs this year's supply, soaring home prices and mortgage rates will make renting more appealing. Fewer qualifying for mortgages will expand the renter pool. A housing shortage is expected to persist, hinting at continued multifamily demand. As affordability concerns loom, especially for lower-income households, 2025 may unveil a new landscape for Multi-Family Housing.

The Capital Market Forcast:

Anticipate Fed rate cuts in 2024, easing property investment. Despite hurdles like 10-year Treasury pressure and stringent lending, optimism looms. Investors eye lower borrowing costs as markets stabilize, hinting at a potential transaction revival this year.

2024 Multi-Family Investment Outlook

Investors are expected to diversify to smaller cities, drawn by lower supply pressure and in-migration. Rising costs, including a 120% spike in insurance, pose challenges. A "generation gap" emerges among investors, impacting strategies, shifting trends, and the investment landscape!

Also don't forget every week we analyze hundreds of properties for positive cash-flowing investor deals.

We're finding gems, packaging them up, and sending them out on a silver platter!

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