Austin area apartment 4Q 2012: Marcus & Millichap
AUSTIN – The booming technology industry in the Austin metro is driving demand for apartment units across the region. Transaction velocity in the Austin market accelerated during the last four quarters, and sales so far this year are outpacing total sales for 2011.
Approximately 980 units were brought online during the most recent 12-month period, down from the 1,400 units added to inventory in the previous time frame.
Developers have over 20,000 units planned for the metro with two projects scheduled to break ground before year end. Additionally, there are nearly 11,000 units under construction with completion dates scheduled through 2014.
High demand for rental units caused vacancy to dip to 4.1 percent during the last four quarters. Asking rents jumped 3.8 percent during the last year to $911 per month while effective rents soared 4.8 percent to $834 per month.
| Rank | Submarket | Vacancy Rate | Y-O-Y Basis Point Change | Effective Rents | Y-O-Y Change |
| 1 | Far Northwest | 3.2% | -140 | $907 | 5.1% |
| 2 |
Hwy. 183 / Cedar Park / Leander | 3.5% | -110 | $759 | 4.3% |
| 3 | Near North Central | 3.6% | -160 | $735 | 4.0% |
| 4 | Near South Central | 3.7% | 50 | $970 | 2.1% |
| 5 | North Travis | 3.8% | -90 | $778 | 4.4% |
| 6 | Central | 4.2% | -200 | $1,077 | 4.5% |
| 7 |
Round Rock / Georgetown / Hutto | 4.6% | -150 | $830 | 4.0% |
| 8 | Southeast | 5.0% | -260 | $738 | 5.4% |
| 9 |
San Marcos / North Hays County | 6.1% | 50 | $782 | 5.2% |
| 10 | East | 6.4% | -140 | $678 | 5.3% |
*The chart does not represent all submarkets in the report.
Read more at Marcus & Millichap Real Estate Investment Services.
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