Austin Multifamily Rents To Grow After Working Off Inventory Glut

Rent growth is predicted to climb sharply through 2026 in the Austin-Round Rock area following half a year of decline, according to Colliers' fourth-quarter multifamily report released last month.

Asking rents may grow by some 14% by year's end to an average of nearly $1,600 a month in the metro area, Colliers predicts. The average rent in the metro stood at $1,396 to close out Q4. 

The trend last year was in the opposite direction. In the latter half of 2025, average rent decreased by $82, or more than 5%. 

Colliers predicts the city's multifamily market will rebalance, thanks to decreased construction activity, which will in turn lead to rental growth. 

In 2023 and 2024, construction boomed across the Austin metro area, with developers building a record number of apartments that significantly outpaced the rate of renter demand. 

The glut of new multifamily space drove down occupancy by 40 basis points at the end of 2025 to 92.4%. Colliers predicts it will rebound to 95.2% by the end of this year.

The report says about 16,500 multifamily units were under construction in Q4, down from 26,990 units in the same period in 2024. 

In the latter half of 2025, Austin landlords used rent cuts to retain tenants as competition increased, Colliers said. Landlords may be on more equal footing in 2026, however.

“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,” the report says.