AUSTIN - Berkadia has released their 2016 forecast for the Austin multifamily market.
With unemployment dropping below 3 percent in 2015, Austin is nearing full employment in 2016.
As such, hiring will decelerate, though remain healthy in 2016.
Headcounts are forecast to rise by 27,800 positions for a 2.9 percent increase.
Technology companies will provide a boost to the metro, highlighted by the scheduled completion of the $304 million expansion of the Apple campus this year. The 1.1 million-sf addition will hold 3,600 more employees.
The campus growth will help drive multifamily demand in the Far Northwest submarket, where vacancy fell 30 basis points to 4.9 percent last year and should continue to lower as limited new inventory comes online in 2016.
Overall, vacancy is expected to decrease 20 basis points to 4.4 percent by December as elevated demand surpasses additions.
Of the 8,010 apartments scheduled to come online in 2016, the largest community is the 444-unit Pearl Lantana in the West submarket.
Operators will advance rents at a healthy clip, while moderately increasing concessions amid greater competition for renters.
Asking rents will rise 4.3 percent to $1,204 per month in 2016 as concessions reach an average of two days of free rent.