Austin among strongest markets in affordable housing production

Austin has become a leader in affordable housing construction in Texas, with 2,717 fully affordable housing units currently under construction – the most of any metro in the state and among the highest in the country, according to a new report from real estate technology company Yardi Matrix. The city is also expected to deliver 3,452 affordable units in 2025, ranking first among U.S. metro areas. The report found that despite its strong pace, Austin faces the same challenges as the rest of the country: rising construction costs, labor shortages and declining new project starts. The report notes that fully affordable housing starts in the U.S. fell by nearly 29 percent in 2024, driven by higher interest rates and escalating costs for material and insurance. Texas, which has the third-largest stock of affordable housing units nationwide (138,500), is projected to add 8,751 units by 2027, second only to California. Other major Texas cities like San Antonio and Houston are also expanding their affordable housing efforts but at a slower pace, with San Antonio projected to deliver 5,581 units by 2027.