Austin multifamily 1Q 2014: Hendricks-Berkadia
AUSTIN – Developers delivered 2,850 units in first quarter 2014, 53.1 percent more than 4Q 2013. The Central submarket had the most completions for the metropolitan area with 590 units.
Rental demand has remained healthy as 2,000 units have been absorbed in 1Q 2014. Leasing activity has accelerated from the 1,330 units absorbed in 4Q 2013.
Developers submitted multifamily permits for 17,200 annualized units in March, up 24.6 percent from December 2013. The recent surge elevated permitting activity 33.5 percent from March 2013. The 1Q 2014 submission rate was a three-decade high.
With an influx of new inventory, vacancy elevated 30 basis points to 5 percent by the end of 1Q 2014. The rise matched the 30 basis-point increase in 4Q 2013.
| Submarkets* | Vacancy | Average Rent | ||
| 1Q 2014 | 1Q 2013 | 1Q 2014 | 1Q 2013 | |
| Central | 4.9% | 4.0% | $1,938 | $1,925 |
| Far Northwest | 4.8% | 4.7% | $1,059 | $1,002 |
| Far South | 5.0% | 4.5% | $1,079 | $1,031 |
| Near Northwest | 4.9% | 4.6% | $1,022 | $968 |
| Near South Central | 5.7% | 3.8% | $1,332 | $1,298 |
| Northwest | 6.9% | 5.4% | $1,101 | $1,035 |
| West | 6.0% | 6.4% | $1,342 | $1,234 |
| Total** | 5.0% | 5.1% | $1,048 | $1,002 |
*Listed submarkets include those which have an average rent over $1,000.
**Total represents all 15 submarkets in the Austin area.
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