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Austin rents ease as new units come into marketAustin rents ease as new units come into markethttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=18132015-02-04T06:56:00Z2015-02-04T07:00:00Z

AUSTIN - Central Texas apartment dwellers are about to get some relief in 2015, as thousands of new units enter the market and ease the metro area’s demand crunch.

More than 10,000 apartment units opened in the metro area last year, and another 8,000 or more units are expected to enter the market this year, according Charles Heimsath, president of Capitol Market Research.

The boom in apartment supply dropped the area’s occupancy rate to 94 percent in the last half of 2014 — the lowest occupancy level in more than three years, and nearly 4 percent below the recent high of 97.8 percent in June 2012.

The 10,000 new units added last year in the region, which stretches from Georgetown to San Marcos, marked the largest increase Heimsath has recorded since he began tracking the numbers in 1991.

The influx expands the region’s apartment inventory by 6 percent, to 180,280 units in all.

With all those new units entering the market, supply is catching up to demand. That means apartment rents are stabilizing after rising rapidly — sometimes as much as 7 percent per year — from 2010 through 2013.

The average rent in the metro area was $1,107 a month in December — an all-time high, but an increase of only $8 from the average rent for June.

“That’s virtually unchanged,” Heimsath said. “You can clearly see that the rapid pace of increase has slowed to almost nothing.”

Austin American-Statesman
Austin-Round Rock
Multifamily
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