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Study shows Austin needs more than 100,000 new apartments by 2035 to keep up with demand

(City of Austin/Facebook)

Austin is in dire need of new apartments, as a report shows the city will need more than 100,000 additional apartment units by 2035 to keep up with demand.

Commissioned by the National Apartment Association and the National Multifamily Housing Council, the study found that Austin had the highest apartment demand across the nation using projected percentage growth and absolute new renters from 2021-2035.

Texas dominated the need for rental housing, with Dallas-Fort Worth and Houston following closely behind in slots two and three, respectively. The study said percentage growth tends to favor smaller metros while absolute growth favors larger metros.

While the study showed Austin was most starved for new units, it ranked fifth for the absolute number of units needed by 2035: 117,107, or a little over 9,000 units per year. Meanwhile, DFW needs 269,906 and Houston needs 209,084, both higher than totals in any other metro on the list.

(Laura Figi/Austonia)

In terms of percentage growth needed, Austin ranked second for percent growth needed at 2.6%, DFW slipped behind at 2% and 1.9% for Houston per year.

All combined, Texas ranks sixth for needed housing, requiring 653,285 new units and an increase of 1.6% per year.

According to a report from the Austin Business Journal, 60 projects were delivered locally in 2021, adding 15,198 new units across Travis, Hays, Williamson, Caldwell and Bastrop counties. There are 50,000 units currently under construction in Austin, though 45,000 are awaiting permits, which can be a lengthy, year-plus long process right now.

Additionally, the industry is grappling with regulatory changes and supply shortages that are slowing the process.

As of July, 47 apartment complexes are under construction, making up 13,270 units according to, and another 128 communities representing 42,257 units are proposed.


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