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Austin, Texas, medical office market defies broader market trends

At 9% vacant, the sector remains closer to equilibrium
The four-star medical office building at 1401 Philomena St. is located in East Austin’s Mueller neighborhood, near Dell Children’s Medical Center. (CoStar)
The four-star medical office building at 1401 Philomena St. is located in East Austin’s Mueller neighborhood, near Dell Children’s Medical Center. (CoStar)
By Israel Linares
CoStar Analytics
June 25, 2025 | 2:36 P.M.

Austin’s medical office sector remains on solid footing, supported by one of the fastest-growing populations in the country. The Austin metropolitan area ranked third nationally in population growth last year, increasing by 2.3% according to the latest U.S. Census Bureau data. These massive demographic shifts have resulted in a greater need for healthcare services, a positive force for the medical office market.

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