Homebuilder Taylor Morrison is betting on the tumultuous Austin multifamily market with the introduction of its built-to-rent brand Yardly to the area.
The Arizona-based firm, which was Austin’s fourth-busiest homebuilder last year, is developing the 175-unit built-to-rent community Yardly Kelly Lane in Pflugerville, the Austin Business Journal reported. It’s the brand’s first development in the Austin metro.Â
It will be built on 11 acres at 5601 Kelly Lane in the town about 18 miles northeast of downtown Austin. The single-story apartments will feature private backyards with limited shared walls. Construction is expected to start this spring, and move-ins could begin later this year.Â
So far, Taylor Morrison has developed 35 Yardly communities across four states, according to its website. That includes one community in Houston and six in Dallas-Fort Worth. Â
Austin’s rent rates have been in freefall, dropping 22 percent since 2022, as the city’s multifamily market grapples with a deluge of supply. In addition, renters have enjoyed concessions like months of free rent.Â
Yardly president Darin Rowe told the outlet it’s betting the market will stabilize and that it’s building for the future market. Â
Developers planning to deliver multifamily assets over the next few years are aiming to introduce their products after rent decline bottoms out. Deliveries peaked in Austin last year, with fewer expected to be completed this year.
Meanwhile, the built-to-rent product has proven its enduring popularity.Â
About 7,000 units were delivered nationwide in 2019, compared with 39,000 units last year, according to Point2Homes. Texas tops the list of states with the biggest development pipelines; nearly 22,000 units were under construction in the Lone Star State at the beginning of the year. Of those, 4,313 were in Austin, coming in third behind Dallas (8,470) and Houston (4,613).Â
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