May 2010

Click here to view as PDF.

The Austin area multifamily sector continued its lead among the four major Texas markets in overall occupancy during May, closing below 10% vacancy. Absorption also continued its positive trend with monthly absorption increasing by 56% from April, placing it second only to the Dallas/Fort Worth sector. Austin also posted the highest increase in rents per unit in comparison to the other three markets with Class A properties increasing $3.24 despite the fact that rents per square foot remained essentially flat across all classes. The construction pipeline for May registered a marginal increase, with figures returning to over 3,000 units after dropping below this mark last month. With more than 66% of the construction pipeline currently pre-leasing and approximately 450 units estimated to deliver in the coming month, expect the market to keep its upper hand.

Austin apartment market occupancy increased 0.68 percentage points in May to 90.88% and has also increased 1.61 percentage points since May 2009. Average rent per square foot has increased $0.001 to $0.972 per square foot during the month, and has declined $0.009 per square foot over the past 12 months. Average rent per unit posted an increase of $1.23 in May; currently at $818.63, rent per unit is down $2.86 over the past year. Austin posted positive absorption of 1,035 units in May, bringing annual absorption to positive 6,220 units.

To subscribe or unsubscribe to this update, please send an email to Scott Sherrill or call
1-800-856-REAL (7325) ext. 4264.

O’Connor & Associates / Research & Consulting Group
Houston: 713-686-9955   Dallas: 214-727-5673