Austin Multifamily Report – Spring 2019
Rents increased by 4.5 percent year-over-year through February, despite robust deliveries throughout 2018, when nearly 11,000 units came online.
Austin’s multifamily market had another strong year in 2018, with rent growth extending beyond expectations. Despite robust deliveries, rents rose another 4.5 percent year-over-year through February, to $1,353. Developers have had a hard time keeping up with demand, reflected in the occupancy rate in stabilized properties, which actually rose 60 basis points year-over-year through January.
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Employment growth occurred across all sectors, with Austin adding 36,800 jobs in 2018, up 3.5 percent year-over-year. Trade, transportation and utilities led growth, having generated 11,200 jobs, while the professional and business services sector added 6,100 jobs and is poised to maintain its evolution as technology companies have announced expansions in the metro. Among them is Apple’s $1 billion, 133-acre development that’s slated to house 15,000 employees once fully operational, as well as WeWork’s rumored $1 billion mixed-use development that’s likely to encompass 3 million square feet of office, residential, hotel, shops and restaurant space.
Nearly 11,000 units came online in 2018, favoring the Lifestyle segment. More than 20,500 units, with most targeting the same upscale segment, were underway as of February. Last year’s sales volume saw a 13.3 percent drop to $1.3 billion, for an average per-unit price of $131,555.