Population, household growth keeping Austin apartment builders busyPopulation, household growth keeping Austin apartment builders busyhttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=140932016-08-08T05:00:00Z2016-08-08T15:00:00Z

​​​AUSTIN – Marcus & Millichap projects that nearly 23,000 new households will be created locally this year, and apartment developers have taken notice.

According to the firm, multifamily permitting issuance remains elevated from 2011 levels and, during that time, apartment stock has expanded 17 percent with the addition of more than 32,000 units. In addition, strong tenant demand has pushed vacancy below the national rate.

Among the findings from Marcus & Millichap's second quarter 2016 report:

  • The private and public sectors will add 33,500 jobs this year, an annual increase of 3.4 percent. Last year, employment grew 4.9 percent year over year, or by 45,600 workers.
  • Developers are set to deliver 11,400 apartments in 2016, increasing apartment stock approximately 5 percent. This follows the completion of 8,200 units in 2015.
  • A strong pace of household formation will support vacancy falling to a tight 3.9 percent by year end, staying below the national average. This is a decline of 20 basis points from 2015 when the rate fell 50 basis points year over year.
  • The average rent will continue to rise at a pace faster than the national average this year, though rising competition to fill luxury units coming online will slow growth. The average will increase 5.4 percent this year to $1,213 per month. In 2015, the average grew 6.7 percent.​
Marcus & Millichap Real Estate Investment Services
Austin-Round Rock
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