Austin apartment market not shaking up national list

AUSTIN – The explosive construction of apartment communities in Austin the past two years is not necessarily a signal that this market is a top pick for developers or investors, according to a national multifamily report by Marcus & Millichap. In fact, Austin dropped down three notches in the real estate firm’s National Apartment Index from 15 to 18.

The index measures economic and supply and demand variables for the upcoming year. Factors include employment growth, vacancy rates, construction rates, housing affordability and rents.

Though job growth should continue to be strong, some 11,500 units will be completed this year, about double last year’s additions. Marcus & Millichap estimate that rents in Austin will rise 4.6 percent to an average of $1,065 per month. Last year, rents climbed about 5.7 percent.

Cities that top the report include New York City, San Francisco and Denver.