Mar 16, 2016
Austin multifamily shows even growth is bigger in Texas
AUSTIN - Steadily rising home prices and a growing population base paired with a positive employment outlook and favorable demographic trends will continue to augment housing demand and attract investors...
AUSTIN – Steadily rising home prices and a growing population base paired with a positive employment outlook and favorable demographic trends will continue to augment housing demand and attract investors to the Austin apartment market in 2016.
Average listing prices in this area of the city range from $400,000 to over $1 million, according to Trulia, while average rents can vary from $1,000 per month for an efficiency apartment to over $3,000 per month for a three-bedroom unit.Alongside Austin’s projected population growth this year, the single-family and multifamily construction pipeline will remain steady in 2016. Deliveries will hold firm from last year as nearly 10,000 units are scheduled to hit the market.
Development this year will be focused in the metro’s southern submarkets, where 5,200 apartments are under construction.
Vacancy reached 4.1 percent at the end of 2015, a 50 basis point decrease year over year as nearly 9,000 apartments were absorbed.
In 2015, steady rent growth allowed the average effective rent in Austin to reach $1,151 per month, a 6.7 percent increase from 2014.
The pace of development will remain elevated in 2016, resulting in a third year of robust deliveries, strong tenant demand and improving fundamentals, which will continue draw investors to the market.
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