A recent report from the apartment search platform RentCafe highlights that Austin, Texas, has constructed the third-highest number of new affordable apartments in the United States between 2020 and 2024. The study analyzed affordable housing development across 146 U.S. cities, revealing that Austin built 13,343 income-restricted units, which account for approximately 14 percent of all new housing in the city.
The term “affordable housing,” as defined by RentCafe, refers to residential buildings where all units are income-restricted and rent prices do not exceed 30 percent of each market’s Area Median Income (AMI). Nationally, around 310,000 new affordable apartments were added over the same five-year period, with a notable spike occurring in 2024 when nearly a third of these units were completed.
Significant Growth in Affordable Housing Development
The report indicates that affordable housing is becoming an increasingly significant part of new apartment construction. In 2024, nearly 14 percent of all new apartments were income-restricted, a substantial rise from just under 9 percent a decade earlier. This trend underscores a growing emphasis on housing affordability among developers and policymakers.
Austin ranks third in the nation for affordable apartment construction, following Seattle, which built 14,290 units, and New York City, with just 50 fewer units than Seattle. This progress is particularly notable when compared to Austin’s performance during the pre-pandemic period of 2015 to 2019, when approximately 5,500 affordable units were developed. The post-pandemic surge represents a remarkable increase of 142.29 percent in affordable housing production.
Furthermore, in a separate ranking of cities with the fastest growth in affordable apartment construction, Austin secured the eighth position. Leading this category was San Antonio, which experienced a staggering 222.54 percent increase in new affordable apartments.
National Trends in Affordable Housing
According to RentCafe, the overall construction of affordable housing across the nation rose by 73 percent compared to the previous five-year period (2015–2019). This growth significantly outpaced the 36 percent increase in total apartment construction, indicating a shift towards prioritizing affordable options in the housing market.
The report lists the top ten U.S. markets with the most new affordable apartments as follows:
1. Seattle, Washington
2. New York City, New York
3. Austin, Texas
4. Twin Cities, Minnesota
5. Atlanta, Georgia
6. Denver, Colorado
7. Los Angeles, California
8. Bay Area, California
9. San Antonio, Texas
10. Miami, Florida
As cities nationwide grapple with housing affordability, Austin’s strong performance in affordable apartment construction may serve as a model for other urban areas seeking to address similar challenges. The substantial increase in new income-restricted units reflects both a response to current housing demands and a commitment to making urban living more accessible for residents across various income levels.
