Investing? Austin multifamily forecast 2016: Marcus/Millichap

​​​​​​​​​​​​​​AUSTIN - Steadily rising home prices and a growing population base will facilitate strong demand for apartments for 2016. More than 60,000 individuals will move to the area in 2016, supporting the creation of 23,000 households.

As both single-family and multifamily construction slow during the next 12 months, the need for affordable-housing options for these new residents will rise, according to Marcus & Millichap’s U.S. 2016 Multifamily Investment Forecast report.

Austin slid one spot in the NMI despite strong employment and household growth.

Following the addition of 30,500 workers in 2015, employers will add 28,500 workers in 2016, expanding payrolls 3.0 percent.

After builders delivered more than 12,000 units in each of the last two years, deliveries will fall to 9,000 in 2016.

Strong demand will keep vacancy at historical lows, declining 20 basis points year over year to 4.1 percent. A 30-basis-point fall was achieved in 2015.

The average effective rent will rise to $1,220 per month this year, an annual increase of 5.4 percent. A 7.3 percent increase was seen in 2015.