Austin Apartment Market Update

Market Summary

• All metrics for the Austin area multifamily sector recorded positive changes in September.
  
  
• Overall occupancy figures recorded a significant increase for the month. The largest increase was noted in Class D properties for which occupancy went up 2.35% over the last month, while recording an increase of 4.9% over last year. Over the year, Class A properties recorded a decrease (-0.28%); a decrease of 0.13% was recorded for the class, over the previous month.
  
  
• The average rental rate per square foot continued to increase for all Classes, although only marginal changes were noted in Class A and Class C properties. The largest increase over the month was noted for Class B properties. Rental rate for Class B properties increased by $0.007 to close at $1.011 per square foot; over the year the average went up by $0.059 per square foot.
  
  
• The average rental rate per unit continued to record significant changes over the month, although for Class A properties the change was marginal compared to other classes. The largest increase over the month was noted for Class B properties; the average went up by $4.46 over the month to close at $783.52 per unit. The largest annual increase was also recorded for Class B properties with an increase of $47.72 over the year.
  
  
• 7,748 units are in the construction pipeline spread over 31 projects. Over 15.5% of the pipeline (or 1,201 units) is currently pre-leasing.

Austin Apartment Market Key Metrics

 Occupancy

94.85%

 Rent / Unit

$891.61

 Rent / SF

$1.060

 Monthly Change

+0.23%

 Monthly Change

+$2.59

 Monthly Change

+$0.003

 Annual Change

+0.64%

 Annual Change

+$43.67

 Annual Change

+$0.052

Absorption was positive 591 units in September and positive 1,838 units in the twelve month rolling period. 4,170 units are in the planning stage.