Third Quarter 2012 Apartment Outlook: Elevated Renter Demand Prompts Surge in Development

According to the third quarter 2012 Austin Area Apartment Market Research Report published by Marcus & Millichap, the Austin multifamily sector is experiencing its tightest conditions since 2001.

A sharp increase in construction levels relative to the 258 units which entered the market in 2011 is expected, as fundamentals continue to support development

  • 3,000 units are expected to come online by the end of 2012, most of which are high-end units concentrated in the southern submarkets; only 258 units entered the market in 2011
  • Job creation continues to accelerate as 29,000 new jobs are projected this year, representing 3.6% job growth
  • Asking and effective rents will continue to increase up 4.2% and 5.6%, respectively, from 2011
  • Year-end vacancy levels should drop by 4.3% from the previous year, as population growth remains steady
  • Central submarket inventory will remain stagnant through the end of the year, but will accelerate significantly in 2013

View the complete Third Quarter 2012 Austin Apartment Research Market 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

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s