Austin Apartment Market Update December 2011

Key metrics for the Austin area multifamily sector closed the year on a mostly positive note although occupancy figures decreased over the month. Over the year all metrics recorded significant positive change.
Overall occupancy continued to decrease for the third month. All classes except Class D recorded decreases. Occupancy in Class A properties stood at 94.34%, a decrease of 0.16% over the month but an increase of 0.42% over the year.
The average rental rate per square foot continued to rise. The average for Class A properties increased by $0.001 over the month and by $0.025 over the year to close at $1.090 per square foot. Class C properties recorded the largest year on year increase ($0.041) among the four classes.
The average rental rate per unit showed significant increases over the month for Class B (up by $3.37 per unit), Class C (up by $4.83 per unit) and Class D (up by $2.55 per unit). Over the year, the largest increase was noted for Class C properties; the average increased by $29.87 to close at $701.32 per unit. The average for Class B properties went up by $29.19 to close at $749.90 per unit. The Class A average saw a difference of $19.03 compared to December 2010.
3,743 units are in the construction pipeline spread over 17 projects. 22% of the units are pre-leasing.

Austin Apartment Market Key Metrics

Absorption was negative 219 units in December and positive 2,005 in the twelve month rolling period. 4,174 units are in the planning stage.