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.