Austin Apartment Market Update September 2011

Key metrics for the Austin area multifamily sector recorded substantial increases over the month, attributed in part to increased demand resulting from steady job growth*. (*Austin forecast, apartment demand).
Occupancy continued to be over 95% for Class A properties and over 93% each for Class B and Class C properties.
The average rental rate per square foot continued to climb. The Class A average went up by $0.004, while the Class B average went up by $0.008 per square foot. Over the year, Class A average has gone up by $0.024 per square foot.
The average rental rate per unit increased by $3.91 for Class A properties and by $6.23 for Class B properties. Over the year, the averages went up by $19.65 (Class A) and $21.38 (Class B). Class C properties recorded the largest increase both over the month ($6.60) and over the year ($21.87).
3,027 units are in the construction pipeline, just over 23% of which are currently pre-leasing. Nine Class A communities and four Class B communities are underway.

Absorption was positive 343 units in September and positive 2,615 in the twelve month rolling period. 4,774 units are in the planning stage.