East Austin Landscape Continues to Change
Any seasoned Austinite could tell you the transformation of East Austin over the past decade has been momentous. Located just across IH-35 from downtown, this area used to be a prime location for affordable housing. In more recent years, however, developers have been focused on building in this area, and East Austin has become a destination with residential towers, lounges, coffee shops and brunch spots. The focus on this neighborhood continues, as East Austin ranks #5 among the nation’s busiest submarkets, with nearly 6,300 apartments currently under construction, a volume that will expand the already swelled existing base by an incredible 32.2%, according to data from RealPage Market Analytics. In the past 10 years, East Austin has averaged delivery volumes at less than 1,000 units annually. By comparison, nearly 4,000 units are scheduled to complete in calendar 2022, which is roughly four times the decade average. Even with elevated new supply, however, this submarket is expected to absorb the new stock well, as apartments here are in high demand. As of March, occupancy in East Austin was very tight at 97.1%. Effective asking rents were up 20% year-over-year as of March – a significant performance for this submarket and one that has maintained for five months now. While fundamentals took a significant dive during 2020 and 2021 in the depths of the COVID-19 pandemic, East Austin has recovered in recent months and is now outperforming historical norms.