Austin apartment overview

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Metrics for the Austin area multifamily sector remained mostly positive in October. The sector reported the highest occupancy among the four markets although the figure represented a slight decrease over the adjusted figure for the previous month. Absorption returned to negative figures for the first time since January this year with Class A and Class B properties registering -34 and -33, respectively. Rents per square foot remained essentially flat for all classes, while rents per unit only exhibited a marginal increase. Class B properties posted an increase of $0.75 per unit and Class D properties recorded an increase of $0.80. Class A and Class C properties recorded increases of less than half a dollar per unit. With almost 36% of the construction pipeline currently pre-leasing and less than 150 units expected to be delivered in the coming month, the Austin market's key metrics will likely remain stable over the next month.

Austin apartment market occupancy decreased 0.14% points in October to 92.89% but increased 2.55% points since October 2009. Average rent per square foot remained the same as previous month, but has declined $0.001 per square foot over the past 12 months. Average rent per unit posted an increase of $0.26 in October; currently at $826.82, rent per unit is up $2.04 over the past year. Austin posted negative absorption of 63 units in October, while over the rolling twelve months it posted positive with 5,961 units.

Austin Apartment Market
Key Metrics

Occupancy

92.89%

Monthly Change

-0.14%

Annual Change

+ 2.55%

Rent / Unit

$826.82

Monthly Change

+ $0.26

Annual Change

+ $2.04

Rent / SF

$0.981

Monthly Change

-

Annual Change

- $0.001

Monthly Absorption

- 63

Annual Absorption

+ 5,961

Units U/C

2,514

Units Planned

1,511

 

The Market Research and Consulting division of O'Connor & Associates provides information necessary to make decision to commercial real estate professionals. Occupancy and Rental Data, ownership and management information are routinely gathered for four major land uses - multifamily, office, retail and industrial. This information allows investors to compare competitive properties, facilitate business decisions and track market and submarket performance. In addition the data is useful to brokers who for example continually monitor Houston retail space leasing, Houston office space leasing, Houston industrial space leasing, Houston apartments, Dallas apartments, Ft. Worth apartments, Austin apartments, and San Antonio apartments.

 This capacity to research, analyze and interpret market trends and the impact of specific transactions is a major reason for why developers and acquisition experts rely on O’Connor & Associates for market research, cost segregation, market studies, feasibility studies, rent studies, tax credit studies, project design guidance, property performance evaluation and lease audits. O’Connor & Associates is an acknowledged source of trends in real estate investing and market activity.

Patrick C. O'Connor has been president of O'Connor & Associates since 1983 and is a recipient of the prestigious MAI designation from the Appraisal Institute. He is also a registered senior property tax consultant in the state of Texas and has written numerous articles in state and national publications on reducing property taxes. He continues to set the standard in direction and quality of our appraisal products, adding services ranging from business valuations and business appraisals to cost segregation analysis for income tax reduction. For more information please www.poconnor.com today!

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