Demand for Apartments Surges as Robust Job Growth in Austin Enters Third Year

According to the second quarter 2012 Austin area apartment market research report published by Marcus & Millichap, tight conditions and rising rents have prompted a turnaround in Austin apartment development, with completions in 2012 expected to reach 3,000 units after slipping to a nearly 20-year low in 2011.

Strong Fundamentals Drive Development in Austin’s Aparment Market According to Second Quarter 2012 Austin Area Apartment Market Research Report

  • The combination of low vacancy and above-average rent growth will continue to attract apartment investors to Austin through 2012
  •  Rising job creation will support sufficient renter demand to offset this year’s spike in apartment completions
  • Overall, apartment vacancy in the Austin metro is forecast to decline 60 basis points in 2012 to 4.3 percent
  • Asking rents are expected to rise 4.2 percent in 2012 to $925 per month, while effective rents will climb 5.6 percent to $851 per month
  • By year end, asking and effective rents are likely to exceed previous peak levels recorded in late-2008 by 6.3 percent and 8.3 percent, respectively

View the complete Second Quarter 2012 Austin Area Apartment Market Research Report.

For information regarding multifamily investments in Austin and Central Texas, please contact:

Joe James | jjames@marcusmillichap.com | 512-338-7852

Kent Myers | kmyers@marcusmillichap.com | 512-338-7853

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