Strong household formation stimulating Austin apartment demand

​​​​​​AUSTIN – New household formation continues to strengthen, keeping demand for local apartments steady. Marcus & Millichap projects that about 11,800 units will be delivered this year, an increase from the previous two years.​

Though development is slowing in southern submarkets, East Austin and Pflugerville/Wells Branch are set to receive more than 1,000 units over the next two years.​

Other projections for 2017:

• Supply will outweigh demand this year as 8,820 units are absorbed, pushing the vacancy rate up to 6.2 percent.
• The average effective rent will increase 3.5 percent to $1,225 per month. Last year, it increased 2.9 percent.