2024 State of the Industry - Rent Drops, Legislative Updates, and Plans for Growth
The Austin Apartment Association’s 2024 State of the Industry event brought together key leaders in the multifamily housing sector to explore the challenges and opportunities shaping the Central Texas market. Experts discussed the latest trends in legislation, demographics, and rental data, offering a comprehensive snapshot of where the market stands today and where it’s heading.
Chelsea Kneeland of Multifamily Insiders set the stage, emphasizing the event's significance. "This event is packed with the data and insights that the industry needs to make informed decisions for 2025 and beyond," she said, underscoring the importance of understanding current dynamics in the multifamily market.
Chris Newton, Executive VP of the Texas Apartment Association (TAA), provided a deep dive into upcoming legislative priorities. “Squatter reform is front and center,” Newton highlighted, explaining the need for reforms to streamline the eviction process. He also pointed out that while property tax reform has been discussed in previous legislative sessions, its impact on rental housing has been minimal. “Addressing these issues head-on is essential for the stability of the rental market,” Newton stressed.
Theron Patrick, Data Architect Analyst from ALN Apartment Data, followed with eye-opening statistics on Austin’s multifamily market. Rents in the Austin area have dropped 7.5% over the past year, driven by a surge in new supply. “We’re seeing more units come online in Austin than ever before, and this competition is creating downward pressure on rents,” Patrick said. With over 23,000 new units delivered in the past 24 months, he noted that while demand is steady, it’s still catching up to the supply. “This is good news for renters. With new supply not slowing down until at least 2026, we expect rents to remain competitive,” Patrick added. He also cautioned that adding excessive regulation could harm the market, which is already facing pressures.
Dr. Monica Cruz, a demographer from the Texas Demographer Center, provided an in-depth analysis of Texas’ population boom. "Texas leads the nation in population growth, adding nearly 1,300 new residents daily between 2022 and 2023," she shared. Cruz highlighted the rapid growth in Austin’s neighboring counties, such as Williamson and Hays, noting that these areas are seeing significant population surges. “As we look toward 2060, projections show continued growth in the Texas Triangle. We need to think critically about how this will shape housing policy and availability,” Cruz remarked.
As the event concluded, it was evident that the Central Texas rental housing market is at a critical turning point. With new supply driving competition, continued population growth, and a new legislative session on the horizon, the multifamily industry stands at the crossroads of both challenges and opportunities. The insights from the 2024 State of the Industry event underscored the importance of innovation, adaptability, and collaboration as the Central Texas market adapts to these dynamic changes.