Austin, Texas – Industry observers estimate that as many as 4,000 apartment units will enter the market in 2012. This level of construction activity represents a major shift from recession levels when multifamily construction came to a near standstill. The number of units under construction today is staggering compared to that of even a year ago; however, developers are confident that demand is strong enough to completely absorb this new supply, and then some.
Austin Needs More Apartments
It’s no secret that the Capital City is in need of more apartments. Even as 9,000 units are under construction today, some predict that supply will not catch up to the remarkably high demand levels for another two or three years. On any given day, Austinites are met with news, reports and ‘best of’ lists touting Austin’s remarkable recovery from the recession, it’s continued job growth and ongoing explosion in population. These days it seems everyone is moving to Austin; locals need only journey downtown via I-35 to experience firsthand the onslaught of out-of-state license plates which were not here only four years ago. Ranked first on Forbes’ list of America’s Fastest-Growing Cities for the second year in a row, the so-called ‘Live Music Capital of the World’ is expected to experience a 6% economic growth rate per year through 2016, according to Moody’s Analytics, more than double the nation as a whole.
These are positive metrics in the eyes of the developers who weathered the downturn, and are now pushing forward full-speed ahead with construction plans. With financing more readily available and no end in sight to the influx of renters flooding the market and driving up rents, investors are paying attention to the Austin apartment market.
For more on the construction boom, visit Austin Business Journal: Apartment Construction Resurging in a Big Way