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IRR: Austin multifamily 2015 viewpointIRR: Austin multifamily 2015 viewpointhttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=9862015-05-20T05:00:00Z2015-05-20T00:00:00Z

AUSTIN - Strong population growth, the attraction of new business, and low unemployment continue to drive the expansion of the Austin multifamily market.

Overall vacancy has held steady at just under 5 percent in the past two years but is expected to increase slightly in 2015, as more than 13,000 new units are expected to be completed.

Rental rates for both A and B/C property classes continue to increase, with units in central and west Austin seeing the highest rates, as demand remains strong.

Cap rates are steady across the metro area and will likely decrease only slightly throughout 2015.

Discount rates decreased slightly in 2014 and will likely remain flat over the coming year.

Downtown Austin continues to be a hotspot for new development, with nearly 2,000 new multifamily units under construction.

Given continued population growth to drive the demand for the increased number of new multifamily units becoming available, the market should continue to remain balanced and strong into 2015.

Austin Multifamily Snapshot
  Urban
Multifamily
Class A
Urban
Multifamily
Class B
Suburban
Multifamily
Class A
Suburban
Multifamily
Class B
Going In
cap rates
5.5% 6.3% 5.8% 6.3%
Discount
rates
7.5% 8.5% 8.0% 8.5%
Market rent
($/unit)
$1,556 $792 $1,104 $816
Vacancy rate 13.4% 1.7% 6.1% 3.5%


See Integra Multifamily Annual Viewpoint 2015.

Also check out Austin Multifamily Market Research.

IRR (Integra Realty Resources)
Austin-Round Rock
Multifamily
https://www.recenter.tamu.edu/Pages/market-research.aspxRead more at {Source}

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