Waco, TX Multifamily Market Report Q2 2026

The Waco economy continues to benefit from its strategic location along the Interstate 35 corridor between Dallas-Fort Worth and Austin, supporting steady population and business growth. Major employers including Baylor University, Baylor Scott & White Health, Ascension Providence, and multiple government agencies provide a diversified employment base that has helped stabilize the local economy. Population increased 0.3% over the past year, while household income climbed 1.7%, supporting long-term apartment demand despite a modestly higher unemployment rate of 4.2%. Continued investment in manufacturing, logistics, healthcare, tourism, and downtown redevelopment should provide additional support for multifamily fundamentals over the coming years.

Key Findings

• Rent Growth Remains Positive Despite Elevated Vacancy: Average asking rents increased 2.3% YoY to $1,375 per unit, demonstrating continued pricing power despite a vacancy rate that remains near 10%.
• Demand Continues to Outpace New Supply: The market recorded 442 units of absorption over the past 12 months compared to 256 units delivered, allowing vacancy to trend lower despite an active development pipeline. Continued tenant demand has helped support positive rent growth and stable operating fundamentals.
• Construction Pipeline Reflects Long-Term Confidence: Developers currently have 906 units under construction, representing one of the largest pipelines the market has seen in recent years. Waco’s steady population growth and diversified economy provide a solid foundation for long-term apartment demand.

Market Demographics

Source: Oxford Economics

• Unemployment Rate:4.2%
• Households: 118,009
• Current Population: 309,875
• Median Household Income: $70,181

Waco Multifamily Rents

Apartment fundamentals remain healthy as asking rents increased 2.7% year-over-year to an average of $1,375 per unit during Q2. Rent growth has remained positive despite elevated supply, highlighting resilient demand and the market’s affordability relative to larger Texas metros. Recent deliveries have largely been concentrated in higher-quality communities, allowing newer product to command premium rents while maintaining overall market pricing momentum. As construction activity moderates over the next several quarters, continued occupancy gains should help support additional rent growth.

Deliveries & Rent Growth

Source: CoStar Group, Inc.

Waco Multifamily Vacancy

The vacancy rate declined to 10.0% in Q2, improving from 10.3% during the previous quarter as leasing activity continued to absorb recently completed inventory. The market recorded 442 units of net absorption, indicating that tenant demand remains healthy despite the elevated level of new supply delivered over recent years. As deliveries slow following the current development cycle, vacancy is expected to gradually improve as demand catches up with new inventory.

Vacancy Rate

Source: CoStar Group, Inc.

Waco Multifamily Construction

Development activity remains active, with 906 units currently under construction, up 51.5% from the prior quarter. Although only 256 units were delivered during the past 12 months, the current pipeline suggests additional inventory will enter the market over the next several years. Much of the new construction consists of higher-quality communities that elevate the market’s overall apartment inventory while attracting renters seeking newer product. Once this pipeline begins delivering, the pace of new construction is expected to moderate, improving the longer-term supply-demand balance.

Units Under Construction

Source: CoStar Group, Inc.

By Vintage

Source: CoStar Group, Inc.

Decade	Asking Rent/Unit	Occupancy
2020+	$1,785	83.00%
2010s	$1,785	91.50%
2000s	$1,495	89.10%
1990s	$1,585	93.60%
1980s	$1,005	91.90%
1970s	$1,085	90.70%
Pre-1970	$973	91.10%

By the Numbers

Q2 2026 | Source: CoStar Group, Inc.

• Concession Rate:1.7%
• Price Per SF:$1.53
• Vacant Units: 2,225
• Vacancy Rate:10%
• Rent Growth:2.3%
• Asking Rent Per Unit: $1,375
• Units Under Construction:906
• Units Delivered:256
• Units Absorbed:442