July 2009

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Austin area multi-family occupancy declined in July, marking the tenth straight month of declines for the sector.  All was not lost however, as positive absorption during July highlighted a run of positive absorption in four of the past five months.  Much of the positive news relating to the sector was directly attributable to the performance of Class A properties, as this group enjoyed month over month increases in rents per unit, rents per square foot and absorption, while occupancy declined by only 0.1%.

Austin apartment market occupancy decreased 0.17 points in July to 88.69% and has fallen 3.85 points since July 2008.  Average rent per square foot has increased $0.001 to $0.980 psf during the month, but has declined $0.005 psf over the past 12 months.  Average rent per unit posted a considerable increase of $1.13 in July; currently at $822.13, rent per unit is up $2.18 over the past year.  Austin posted positive absorption of 502 units in July, bringing annual absorption to -547 units.

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