AUSTIN, Texas — Austin has been named one of the Top 3 U.S. metros for new apartment construction, according to a recent RentCafe report, underscoring the city’s role as a housing growth leader despite cooling real estate prices.

The report highlights Austin as a “Texas powerhouse” that is “stealing the spotlight at the city level” with record-breaking apartment completions. More than 15,000 new apartment units have already been delivered this year, with developers on track to finish 26,715 rental units by year’s end.

Although the pace represents a 5.3% slowdown compared to 2024, it remains one of the most active housing markets in the country.

Population Growth Driving Demand

The study links Austin’s boom directly to rapid population growth:

“From 2020 to 2024, Austin’s population grew by 10.9%, making it the fastest-growing large metro in the U.S.,” the report says. “Naturally, this steady influx of newcomers — particularly young professionals, tech workers and people moving from other states — has created intense demand for apartments.”

That demand comes even as home prices and apartment rents in Austin fell more than in any other U.S. city in 2024, reflecting a broader post-pandemic property cooldown. From 2020 through 2022, Austin surged with major corporate relocations, including Tesla and Oracle, which fueled massive in-migration. But as migration patterns stabilize, developers are still racing to meet long-term housing needs.

Texas Leads National Apartment Boom

Nationwide, apartment construction remains strong, with 500,000 new units projected by the end of 2025. More than half of those are concentrated in the South, with Texas cities dominating.

• Dallas leads the state with 28,958 new apartments, making it the nation’s second-highest metro for apartment construction this year, even though completions dropped 22.4% from 2024.
• Houston ranked No. 8 nationwide, delivering 14,000 new rentals.
• San Antonio placed 17th, adding over 8,000 new units.

Overall, Texas tops the country with 81,400 new apartments expected to open in 2025.

Austin’s Role in the Housing Cycle

The scale of apartment development reflects both Austin’s tech-driven economy and its continued appeal to transplants, even as affordability remains an issue. Developers between 2021 and 2023 moved aggressively to expand supply, laying the groundwork for Austin to be named the No. 1 U.S. city for apartment completions in 2025.

The RentCafe study analyzed data from 369 metropolitan areas, focusing on large-scale projects with at least 50 units. Austin’s high ranking shows how new supply is reshaping the rental market, even as the city adjusts to its first major housing slowdown in years.

“This surge is directly tied to the city’s rapid population growth — fueled by Austin’s status as a thriving tech hub,” the report states.

Outlook

Austin’s record-setting apartment pipeline will continue to impact rents and availability into 2026. While the housing market cools, the city’s construction boom places it among the most active rental markets in the nation, cementing its reputation as a housing and development powerhouse in Texas.

Originally reported by Cristela Jones in My San Antonio.