Marcus and milichap has publised their 3rd quarter apartment research report. I says in so many words that Austin is experiencing a growth in jobs, a reduction in construction, an increase in rents and a reduction in vacancy. Each of those things combined equals a good time to own rental property.
The report has vacancy rates of 4-6.6% depending upon the submarket and increases in rents from 2.7 to 5.6% over last years rents. the only cloud on the horizon is contruction permits are up as they should be when things are working this good in a market. Hopefully they will not over build the market and push it down again in a few years when more product comes
online. For now things are looking good for the rental market in Austin and the surrounding areas.
Austin Investor Interests also published some data on the austin market. Their info says that we have achieved a 95% occupancy and rental rates up over 9% to the highest rates ever for the city. They also have a concern over what happens once the new contruction is finished and those units begin to be offered. Normally to fill an apartment complex the tenants will get consessions. (that is a dirty word and now I need to wash my mouth out). In the current environment those dirty things are having an effect that is taking about 2% off of market rents in the past they have taken a bigger chunk out of the top line
when you consider them over the full year’s rent.