A new study shows relief is in sight for renters in Austin: The city led the country in affordable housing construction in 2024.
The study from real estate analysis firm Yardi Matrix found Austin built 4,600 affordable units last year, and the city is projected to build more units than any other city over the next few years. These homes are intended for people making 60% of the median-family income in Austin, which is roughly $76,000 a year for a family of four.
Doug Ressler with Yardi Matrix says Austin's moves to build denser housing has led to a boom in market-rate apartments, as well as developments that offer affordable housing.
Even though Austin's real estate market cooled somewhat over the last few years, he said, it's still a "hot market" for multifamily housing of all stripes.
"A lot of people think that from a market-rate standpoint that Austin has saturated," he said. "Investors are still interested not only for market-rate, but also for … affordable [housing]."
Ressler’s analysis found Austin built 4,605 affordable units in 2024, more than double the number in 2023 and the most in the country by a respectable margin. Yardi Matrix forecasts Austin could build 9,528 homes in the next three years. By comparison, Seattle, the city forecast to build the second-most units, was projected to build 6,300.
These developments are largely subsidized by tax credits to developers, which have been a boon to Austin's housing stock.
"The market's right," he said. "You’ve got availability of land still pretty reasonably priced. Although the land prices are going up, developers are buying into it."
It's a far cry from several years ago, when the city continuously struggled to build affordable housing. Ressler says tax credits to private developers have helped fill that gap in Austin. The Yardi Matrix analysis suggests expanding those credits is crucial to attract more affordable housing investment from private developers.
While the Trump administration has pledged to build more housing and tackle affordability, the report notes it's unclear whether an $11 billion proposed expansion to the federal subsidies will make it out of Congress.
Support for KUT's reporting on housing news comes from the Austin Community Foundation and Viking Fence. Sponsors do not influence KUT's editorial decisions.
