Rent spread keeps Class B, C Austin apartment demand healthyRent spread keeps Class B, C Austin apartment demand healthyhttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=185282017-12-05T06:00:00Z2017-12-05T17:00:00Z

​​AUSTIN – With local job growth slowing and the labor market tightening, Marcus & Millichap says the apartment market is showing signs of stabilizing.

"Healthy in-migration trends and employment gains are producing strong demand for units, and development will reach a new peak in 2017," the firm said in its fourth quarter 2017 report. "Housing needs are rising as new households are formed at a stable pace, and net absorption reaches one of its highest levels in the last ten years as more than 10,200 units are filled."​

New supply will outstrip demand for a second consecutive year, but vacancy remains at 6 percent, contributing to a steady increase in the metro’s average effective rent.

Vacancy is tightest for Class C units, reaching 5.3 percent in the third quarter.

​"Low vacancy in this segment has encouraged strong rent gains over the last 12 months, with the average effective rent climbing more than 4 percent to over $1,000 per month," according to the report. "Development activity is concentrated in the Class A segment, and the spread between effective rents in the two classes is large enough to keep many renters from moving into newer luxury buildings. As a result, demand for upgraded older properties will remain strong."

Marcus & Millichap Real Estate Investment Services
Austin-Round Rock
Read more at {Source}

 Search NewsTalk Texas