Austin Real Estate Still Strong and Booming!
Austin Business Journal - 1:56 PM CDT Wednesday, May 23, 2007
Gains in occupancy and rental rates continue to paint a positive
picture in the Austin apartment market.
The local market saw occupancy creep up less than a percentage point
in April to 93.38 percent -- the highest occupancy level of any of the
major Texas markets, according to a new report from Texas real estate
services firm O'Connor & Associates. Average rent per unit rose $2.05
in April to $794.23. The month also saw the absorption of 77 units for
a total of 1,907 in the last 12 months.
The O'Connor report shows 5,353 units now under construction in the
market with another 4,573 proposed. The most active submarkets in
terms of new product are downtown and Southeast Austin.
Another apartment report from Marcus & Millichap Real Estate
Investment Services suggests the landscape will only improve. Austin
is expected to add 24,200 jobs this year, an employment increase of
3.3 percent. That's not as robust as the 4.8 percent job growth posted
last year, but still a strong showing. Marcus & Millichap forecasts
that vacancy will drop to 6.8 percent by year-end and owners are
likely to raise effective rents 5.4 percent to $747 a month.
Still, the apartment market is contending with a growing local condo
craze. Dozens of condo projects small and large are popping up across
the area, and with apartment rents rising, an expanding segment of
residents that have rented heretofore are exploring for-sale options.
That said, the population is rising rapidly and the number of
apartment units delivered this year will be more than double the
number of completed condos, according to the Marcus & Millichap
report.
If you want more up to date info about the Texas Real Estate trends and are
ready to start playing the game contact Ellmaker Realty now!