News Summary
Presidium has completed a new multifamily complex featuring 358 units in Austin, Texas, at a time when apartment construction permits are experiencing a significant downturn. Despite a sharp decline in permits across the city, Austin remains at the forefront of multifamily housing approvals nationwide. This decrease in construction is linked to rising housing affordability issues, as fewer new units are available to keep rental prices stable. The market faces challenges as developer confidence wanes due to rising interest rates and costs, leading to predictions of diminished new unit deliveries in the upcoming years.
Austin
Presidium has officially completed the construction of a new multifamily complex that features 358 units across four buildings located at 12210 Tech Ridge Blvd, in Austin, Texas. This development comes during a notable downturn in apartment construction permits across the city, which has recently fallen below levels observed during the pandemic.
Decline in Apartment Permits
Austin has seen a significant decrease in permits for multifamily housing, described as one of the sharpest declines nationwide. Despite this decrease, the city has issued more multifamily permits than any other metro area analyzed, as reported by Redfin. From April 2024 to March 2025, the average permits granted to developers for new multifamily units reached 64.5 units per 10,000 people within the greater Austin area.
Impact on Housing Affordability
The downturn in apartment construction directly correlates with rising housing affordability issues in Austin. Enhanced availability of new rental units in the past had played an essential role in limiting rent increases across the city. However, with the current decrease in permits, the city may face challenges in maintaining rental affordability.
Current Rental Market Trends
As of March, the median asking rent in Austin has seen a noteworthy decline of 10.7% compared to the previous year, settling at $1,420, which is $379 less than the record high. Nationally, similar trends are observed where approximately 63% of major metropolitan areas are experiencing reduced approvals for multifamily housing units compared to the pandemic era.
Changing Developer Confidence
One of the key factors contributing to the decline in multifamily housing permits is the increased caution among builders, driven by elevated interest rates. Rising costs have made many housing projects financially unfeasible, leading to a slowdown in new projects coming to fruition. Experts from Redfin point out that this cautious approach among developers is impacting the overall housing market landscape.
Future Construction Forecasts
Looking ahead, the U.S. construction pipeline for new apartment units is predicted to diminish significantly through 2027, according to forecasts from Yardi Matrix. Approximately 508,089 new apartment units are expected to be delivered in 2025; however, this is a decline from the anticipated 554,288 units initially expected in 2024. Projections indicate further drops in new unit deliveries to 371,509 in 2026 and 326,911 in 2027, with hopes for a recovery beginning around 2028.
Current Status of Austin’s Housing Pipeline
In Austin specifically, the number of apartment units currently under construction has decreased. As of October 2024, there were 22,909 units under construction, a significant drop from 40,895 units reported in October 2023. Other major Texas markets, including North Dallas and Houston West, have also experienced year-over-year declines in units under construction.
Responses and Initiatives
In light of the current housing situation, Austin Mayor Kirk Watson plans to present a resolution that aims to revisit incentive programs for developers. This initiative focuses on constructing taller buildings in exchange for providing affordable housing options, indicating an effort to combat the challenges facing the local housing market.
Conclusion
The completion of the new multifamily complex by Presidium represents a noteworthy development amidst a broader landscape of decreasing multifamily construction permits. As Austin navigates through these changes, the city’s approach to housing incentives and construction initiatives will be critical in shaping its future housing affordability and availability.
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Additional Resources
- Axios: Apartment Building Permits Plummet in Austin
- Wikipedia: Austin, Texas
- RE Journals: New Multifamily Construction Falling Across United States
- Google Search: Austin Real Estate Trends
- JLL: Financing for Class A Far West Multi-Development in Austin
- Google Scholar: Multifamily Housing Development
- CultureMap Austin: Apartment Construction in Austin
- Encyclopedia Britannica: Austin Housing Market
- Redfin: Multifamily Construction Permits 2025
- Google News: Austin Housing Policy
Author: STAFF HERE AUSTIN WRITER
The AUSTIN STAFF WRITER represents the experienced team at HEREAustinTX.com, your go-to source for actionable local news and information in Austin, Travis County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as SXSW, Austin City Limits Music Festival, Formula 1 United States Grand Prix, and the Austin Film Festival. Our coverage extends to key organizations like the Greater Austin Chamber of Commerce and Visit Austin, plus leading businesses in technology, automotive, and retail that power the local economy such as Dell Technologies, Tesla, and Apple. As part of the broader HERE network, including HERECollegeStation.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
