Austin area apartment 1Q 2013: Marcus & Millichap
AUSTIN – Austin’s economic recovery is drawing investors to the market where job and population growth bodes well for apartment operators, according to the most recent report from Marcus & Millichap.
Institutional investors have become increasingly active in the metro during the last year, and the lack of new inventory has steered many of these institutional-grade buyers to ten- to 12-year-old Class A assets.
Developers will complete 9,000 units in the Austin area during 2013, growing inventory by nearly 5 percent. Over 7,600 apartments will come online as market-rate rentals. The remainder will consist of student, senior and affordable housing.
| Rank | Submarket | Vacancy Rate | Y-O-Y Basis Point Change | Effective Rents | Y-O-Y Change |
| 1 | Downtown / University | 2.1% | -130 | $1,984 | 11.8% |
| 2 | Near North Austin | 4.2% | 110 | $1,032 | 4.3% |
| 3 | Arboretum | 4.3% | 0 | $978 | 7.8% |
| 4 | Cedar Park | 4.5% | -70 | $922 | 4.3% |
| 5 | Southwest Austin | 5.2% | 70 | $1,140 | 6.0% |
| 6 | North Central Austin | 5.2% | -110 | $771 | 6.2% |
| 7 | San Marcos | 5.3% | -90 | $1,019 | 3.9% |
| 8 | Far South Austin | 5.5% | 110 | $959 | 6.3% |
| 9 | Far West Austin | 5.6% | -30 | $990 | 6.6% |
| 10 | Southeast Austin | 5.7% | -50 | $903 | 6.1% |
Read more at Marcus & Millichap Real Estate Investment Services.
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