No cooling off for Austin’s apartment market
Nov 11, 2013
Austin American Statesman
The Austin-area apartment market continues to boom.
The market, among the hottest in the nation in the past three years, shows no sign of slowing down, as 18,600 units were under construction at the close of the third quarter, according to apartment tracker Austin Investor Interests.
The rate units are being added makes the area’s inventory growth the second-most aggressive in the country, behind only Raleigh-Durham, N.C., said Greg Willett, vice president of research and analysis at MPF Research.
On average, Central Texas apartment units were almost 96 percent full in the quarter, with rents averaging $1,007 a month, up 6.5 percent on an annual basis, Austin Investor Interest reports.
More than 12,000 units are expected to be completed in the next 12 months, said Robin Davis, manager of Austin Investor Interests
“The pace of new starts has been unbridled, and continues to race forward,” Davis said. “The next 12 months are expected to see another 10,663 units break ground if developer expectations hold true.”
Central Texas is poised to absorb all the new units, provided the region’s job and population growth continue as is expected, say local real estate experts and apartment developers. Stricter home-loan requirements, along with home price appreciation and rising interest rates, also are adding to rental demand, experts say.