Austin Apartment Market Update November 2011

Key metrics for the Austin area multifamily sector were essentially positive in November.
Overall occupancy continued to decrease, dropping below 94% for the first time in three months. All classes, except Class C, recorded marginal declines. Occupancy in Class A properties stands at 94.5%, coming down by 0.22% over the previous month.
The average rental rate per square foot has continued to rise steadily for the last six months. The average for Class A properties stood at $1.089 per square foot, an increase of $0.004 per square foot over the previous month. For Class B properties the average stands at $0.964 per square foot.
The average rental rate per unit recorded significant changes for all classes; for Class A properties the average went up by $2.07 to close at $1,013.97 per unit. For Class B properties the average increased by $4.67 over the last month. Over the year, the average for Class B has increased by $30.08 to close at $746.5 per unit.
3,194 units are in the construction pipeline spread over 14 projects. Five of the projects are pre-leasing.

Absorption was negative 233 units in November and positive 1,907 in the twelve month rolling period. 4,774 units are in the planning stage.