Austin’s multifamily market has evolved significantly since 2020. The left-hand map shows the city’s apartment stock as of 2020, concentrated along a north-south corridor from Northwest Austin to the University of Texas to Downtown and into South Austin. This has historically comprised the backbone of Austin’s multifamily market, offering density, connectivity and proximity to employment centers.

The right-hand map depicts how multifamily development has shifted eastward over the past 25 years. New multifamily neighborhoods have emerged in East Austin, Riverside and Pflugerville, where, in some cases, more than 70% of the apartment inventory has been delivered in the past four years.

The changed development pattern reflects evolving renter preferences. Demand has notably risen in urban-adjacent “Inner Ring” submarkets, such as Riverside, East Austin and Southwest Austin, which offer walkability, access to entertainment and relatively short commutes. All these attributes appeal to lifestyle-driven renters. Since Q1 2022, Inner Ring submarkets have posted annual rent growth of 3%, outpacing both traditional suburban and downtown submarkets.

Meanwhile, established west-side neighborhoods like the Arboretum and Southwest Austin have seen limited new construction, and are no longer the epicenter of growth. While these established markets still appeal to some renters, momentum is now clearly behind areas that blend urban proximity with modern amenities and lifestyle appeal.

It’s important for multifamily investors to bear in mind that Austin’s future is being shaped by where people want to live, rather than where they work.