February 2009

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The Austin area multi-family market continued to struggle during February, as occupancy declined by over half a point and rents remained flat after months of steady increases.  With concessions continuing to increase, indications are that rents will soon begin to fall, potentially by as much as 3-5%, as over 11,000 units are scheduled to be delivered over the next two years. 

Austin apartment market occupancy decreased 0.57 points in February to 89.63% and fallen 3.62 points since this time last year.  Average rent per square foot has stabilized at $0.990 psf, and have gained $0.011 psf over the past 12 months.  Average rent per unit posted an increase of $.32 in February; currently at $829.96, rent per unit is up $13.62 over the past year.  Austin posted negative absorption in February of -399 units, bringing annual absorption to -485 units.

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