November 2009

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The Austin area multi-family sector took a light hit during the month of November as occupancy and rents per square foot both saw slight declines.  However, the overall strength of the market was conveyed as absorption stayed positive in light of significant completions during the month.  As usual, Class A properties lead the market with strong gains in per square foot (+ $0.003, $1.066) and per unit rents (+ $6.08, $999.86), while occupancy declined minimally (- 0.30%, 90.84%). The coming months are expected to continue the trend of stable to increasing rents for Class A properties, accompanied by decreasing occupancy.

Austin apartment market occupancy decreased 0.26 points in November to 90.09%, and has fallen 1.77 points since November 2008.  Average rent per square foot has decreased $0.002 to $0.981 during the month, and is down $0.009 psf over the past 12 months.  Average rent per unit posted an increase of $0.66 in November; currently at $825.65, rent per unit has declined $1.11 over the past year.  Austin posted a positive absorption of 94 units in November, bringing annual absorption to 3,135 units.

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