El Paso apartment forecast 2013: Hendricks-Berkadia

EL PASO – Hendricks-Berkadia (formerly Hendricks & Partners) has released its latest 2012 Review & 2013 Forecast for El Paso.

Net domestic migration totaled more than 6,200 persons in 2012, compared to an average of about 2,700 persons annually over the prior decade. Over the next two years, domestic migration is expected to average 6,000 new residents annually.

Net move-ins are predicted to total 580 units in 2013, up 16 percent on a year-over-year basis. Apartment absorption will ease to 350 newly occupied units in 2014.

Apartment completions will rise to nearly 600 units in 2013, and then trend down to fewer than 300 units in 2014. Development trends include a resurgence in downtown housing in anticipation of the new baseball stadium, as well as suburban mixed-use developments.

Multifamily permitting activity will slow to approximately 500 units annually during both 2013 and 2014. Vacancy will edge up to 4.4 percent in 2013 and will tighten to 4.1 percent by year-end 2014.

The average monthly asking rent will surpass the $700 mark by the end of 2013, rising to $706, with 2014 seeing a further gain to $722.

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