MPF Research: Austin multifamily 4Q 2014

AUSTIN – Broad-based economic gains combined with the metro’s already favorable demographics have fueled demand for housing,

The gains have generated strong revenue growth for the apartment sector and led to elevated levels of apartment development, according to MPF Research.

Occupancy has hovered around the 95 percent mark for over three years.

With tight occupancy, apartment operators have pushed rents, but rent growth levels dipped a bit in 2014 in response to a growing amount of completions and notable construction pipeline.

Effective rents increased 3.6 percent in 2014 — a solid rate, but meaningfully lower than the 4.8 percent hike in 2013. Driving the recent slowdown was softness in the top-end of the market.

Quarterly apartment demand in Austin showed seasonal weakness during fourth quarter 2014, as 802 units were absorbed. Meanwhile, new supply easily outpaced net demand, which led to a 1.1-point decline in the overall occupancy rate. In response, operators cut effective rents 0.4 percent quarter-over-quarter, the first quarterly decline since 4Q 2012.

Read more at MPF Research.

tags: 2015 IRR Multifamily Annual Viewpoints,  Transwestern Multifamily MarketWatch Feb. 2015, ARA Multifamily Stats 2014, Multifamily under Austin Market Research​.