Austin area apartment 2Q 2014: Marcus & Millichap
AUSTIN – Austin remains a magnet for new and expanding tech firms and for young professionals, according to Marcus and Millichap’s most recent quarterly report.
In 2013, individuals between 20 and 34 years old accounted for more than a quarter of the metro’s new residents, versus a 10 percent share nationally. This year should be no different, as hiring by notable tech companies attracts renter-age professionals to the area.
Multifamily completions will surge to an estimated 14,120 apartments in 2014, resulting in a 7 percent increase in Austin’s apartment stock. In 2013, apartment deliveries totaled 5,500 units.
During first quarter 2014, single-family permit activity was up 15 percent compared with 1Q 2013. Multifamily permits, on the other hand, dropped roughly 65 percent over the same time period, which may be a sign that the building boom is starting to lose steam.
| Rank | Submarket | Vacancy Rate | Y-O-Y Basis Point Chg. | Effective Rents | Y-O-Y Change |
| 1 | Downtown/University | 2.6% | 50 | $2,022 | 1.9% |
| 2 | Arboretum | 3.8% | -50 | $1,019 | 4.2% |
| 3 | Near North Austin | 4.1% | -10 | $1,098 | 6.4% |
| 4 | Far South Austin | 4.2% | -130 | $1,016 | 5.9% |
| 5 | Pflugerville/Wells Branch | 4.3% | -160 | $934 | 7.7% |
| 6 | South Austin | 4.3% | -280 | $1,138 | 3.0% |
| 7 | Round Rock/Georgetown | 4.4% | -170 | $955 | 6.1% |
| 8 | Southwest Austin | 4.4% | -80 | $1,188 | 4.2% |
| 9 | North Central Austin | 4.7% | -50 | $817 | 6.0% |
| 10 | Northwest Austin | 4.9% | -90 | $1,002 | 7.6% |
*Chart includes top ten of 15 submarkets, ranked by vacancy.
Read more at Marcus & Millichap Real Estate Investment Services.
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