Austin multifamily growth continues, but what's on the horizon?Austin multifamily growth continues, but what's on the horizon?https://www.recenter.tamu.edu/news/newstalk-texas/?Item=120002016-02-08T06:00:00Z2016-02-08T21:20:00Z

​​​​AUSTIN - Austin's apartment market is as strong as ever and gearing up for another huge round of development, according to the latest Austin Multifamily Trend Report published by Austin Investor Interests LLC. ​

Even as thousands of units have been added to the apartment inventory in the past three years, another 15,000 units are expected to be delivered in 2016. ​

In general, 2015 was a stellar year for conventional multifamily development with high occupancy across all types of product and a continued upward trek in rents.

Studio units—usually less than 500 sf—appear to be the product most in demand with rents increasing 9.3 percent annually or about $83 per month. 

​"Look for 2016 to bring about additional sales, rent challenges in pockets, heightened completions and positive absorption to continue."

Optimism continues, but there are some signs of concern.

A significant percentage of developers are selling projects quickly after completion, indicating they may not be bullish about long hold prospects. 

Similarly, investors of older products are initiating renovations immediately after purchase with the intent to resell the property after a short hold.

"Area investment shows precarious signs of pumping in and pulling out," the report explained.

Here's a look at a few highlights of the report:

  • Occupancy is highest in Bastrop at almost 98 percent but rents are lowest—$0.98 per sf.
  • Occupancy is lowest in the Central Business District at 91 percent but rents are highest—$2.52 per sf.
  • Rents have increased the most in the far north submarket—7.6 percent.
  • Concessions across all submarkets increased 11 percent in fourth quarter. Special pricing was available in 38 percent of the properties.
  • Some 17,535 conventional units are currently under construction across the Austin metro area.
  • Affordable housing and student housing projects account for another 3,436 units under construction.
  • Some 8,248 units were delivered in the past year almost equal the amount of net absorption.
  • During the past year, 91 investment sales totaling 22,023 units were recorded. The average price was $117,100 or $137 per sf.
  • At the end of 2015, 32 apartment properties had been newly listed for sale with 40 percent already under contract.
Austin Business Journal
Austin-Round Rock
http://www.bizjournals.com/austin/blog/real-estate/2016/01/austins-apartment-market-ready-for-another-robust.htmlRead more at the {Source}

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