Austin Apartment Overview

By Author: Patrick O Connor
Total Articles: 48
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Occupancy levels continued to climb both overall and for individual classes. Vacancy in Class A properties in particular has remained at less than 6% for several months running. Class A properties also recorded favorable absorption with 266 units – over 50% of the overall – absorbed over the month. Rental rates showed improvements both on a square foot and a per unit basis. Average rent per unit increased by $1.61 for Class A properties to close at $997.75 per unit, a steady increase since January. Over 24% of the current construction pipeline is pre-leasing, with Class A properties constituting over half the pipeline; however pre-leasing has not begun for any of the communities in this class. Since no deliveries are expected in May, the metrics for Austin will continue their positive trend.

Austin apartment market occupancy increased 0.27% points in April to 93.55% and increased 3.32% points since April 2010. Average rent per square foot increased by $0.001 per square foot over the previous month and increased $0.023 over the past 12 months. Average rent per unit increased by $0.850 in April; currently at $836.92, ...
... rent per unit is up $18.94 over the past year. Austin posted positive absorption of 512 units in April, while over the rolling twelve months absorption was positive with 6,278 units.

Austin Apartment Market
Key Metrics

Occupancy

93.55%

Monthly Change

+ 0.27%

Annual Change

+ 3.32%

Rent / Unit

$836.92

Monthly Change

+ $0.850

Annual Change

+ $18.94

Rent / SF

$0.994

Monthly Change

+ $0.001

Annual Change

+ $0.023

Monthly Absorption

+ 512

Annual Absorption

+ 6,278

Units U/C

1,443

Units Planned

2,596

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 studies, feasibility studies, rent studies, tax credit studies, market research, 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.