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.