Austin apartments stay hot, but landlords in control

AUSTIN – The Central Texas apartment market’s hot streak isn’t over yet. The market saw about 4,400 net new units leased during first quarter 2015, bumping the annual total through March to 12,940 units, according to MPF Research.

Only three metro areas — Houston, Miami and Boston — saw stronger first-quarter demand, while Austin’s annual total was the fifth-highest level nationwide.

The local occupancy rate is 95 percent, down from the 95.1 percent rate in early 2014. With all the new supply, rent growth — while still healthy — is slowing a bit. Overall, rents are now averaging $1,088 a month, and for the new properties just coming to market, $1,433 a month.

On average, rents rose 3.3 percent during the 12 months that ended in March, offering renters some relief from the annual hikes of 4.5 percent a year ago and 6 percent to 7 percent back in 2011-2012, according to MPF Vice President Greg Willett.

Although some Austin complexes are offering special deals — generally about one month’s free rent in some areas where lots of new luxury units are opening, like along South Lamar Blvd. — landlords remain in the driver’s seat, leasing agents say.

Austin’s strong first quarter mirrors the national picture, where demand is continuing to rise and the rapid leasing pace is pushing up occupancies and rents. Apartment demand was up 55 percent in 1Q 2015 year-over-year.

Austin apartment NewsTalk; Austin Market Research