A glut in Austin’s apartment supply is slowly leveling out this year and analysts expect vacancy rates to fall an estimated 9 percent, according to the latest market data from Marcus & Millichap Real Estate Investment Brokerage Co.
The real estate investment firm said the city is forecast to add 19,100 jobs this year, prompting a rush of new residents and a rise in demand for residential rentals. At the same time, the apartment development pipeline has drastically thinned out, with 2,860 new units expected this year, down from 10,340 in 2009.
All of these factors will put upward pressure on pricing, Marcus & Millichap reported, and average rent is expected to rise 2.4 percent to $864 a month. The average slid 3 percent last year. At the same time, the end of the first-time homebuyers’ incentive will keep would-be homebuyers in the rental market.
The near South Central part of the city is expected to experience to highest decline in vacancy, a 5.1 percent shift to 7.2 percent. Though the North Travis area will have the lowest vacancy at 7 percent. Southeast is expected to see the highest vacancy at 11.1 percent, which is mostly stable from 2009. Central Austin is the only region where vacancy rates will rise, jumping 3.6 percent to 9.4 percent, likely because of its highest average rent of about $1,014.
Courtesy of the Austin Business Journal
