Rents continue to plummet in Austin's multifamily sector — but some signs point to recovery as the market fights off high levels of supply. The average monthly ask was $1,396 in the fourth quarter of 2025, which was down from the $1,478 posted in the 12 months prior and the 10th straight quarterly decline, a market report from Colliers finds.
The declines continued to impact Class B assets, according to the brokerage.
But what's different now is that demand is starting to wane. In fact, net absorption flipped to negative territory at -230 compared with +8,586 units posted in the fourth quarter of 2024.
Also, occupancy dipped by 40 basis points to 92.4 percent.
The good news is that Austin multifamily deliveries slowed to 3,764, about half the 7,545 units posted in the fourth quarter of 2024. Moreover, construction fell to 16,595 compared with 26,990 units.
That's expected to lead to stronger fundamentals in 2026. Colliers predicts that in the fourth quarter this year, demand will surge to 19,425 units against just 10,153 units of supply. Occupancy is set to improve to 95.2 percent, rents will increase to $1,407 and construction will be at 9,953 units, according to the brokerage.
"Looking into the new year, slower supply growth is expected to help restore equilibrium and strengthen long-term resilience in the face of softened demand," Colliers wrote.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.