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Will new supply ease Austin’s apartment rents?Will new supply ease Austin’s apartment rents?https://www.recenter.tamu.edu/news/newstalk-texas/?Item=22962014-12-04T13:36:00Z2014-12-04T07:00:00Z

AUSTIN - Although a record number of new units are opening in Central Texas this year amid an ongoing apartment-building boom, rents are continuing to rise due to robust job creation, particularly in the high-tech sector, according to Marcus & Millichap's fourth quarter 2014 report.

Builders are due to wrap up construction on more than 14,500 apartment units in Central Texas this year, the highest level of new supply since at least 2000.

As of the end of September, rents averaged $1,078 a month, a 6.2 percent increase from September 2013.

“While high-tech salaries in the Austin area among the most generous in the U.S. relative to the cost of living, many workers in the industry prefer the flexibility and lack of maintenance associated with apartment living,” Marcus & Millichap said.

Meanwhile, the growth in Austin’s population of 20- to 30-year-olds — who are more likely to rent than buy — is projected to grow by 2.6 percent this year, compared to a 1 percent gain forecast nationally, the firm reports.

The year should close with the region’s apartment complexes 95.5 percent full on average, just a smidge lower than the 95.8 percent average occupancy at the end of 2013, according to MPF Research.

Rent growth has slowed a bit as landlords try to quickly fill the estimated 3,500 new units that MPF says will be completed in 4Q 2014.

However, the Austin area is on track for annual rent growth this year of about 3.6 percent, down from 4.8 percent in 2013, according to Greg Willett, vice president of research and analysis at MPF.

For more on multifamily and other sectors, check out Austin-Round Rock-San Marcos Market Data Sources.

Austin American-Statesman
Austin-Round Rock
Multifamily
http://www.mystatesman.com/news/business/will-new-supply-ease-austins-apartment-rents/njGcQ/#ba1aa8fa.3380261.735570Read more at {Source}

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