August 2009

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The month of August was highly favorable for the Austin area multi-family sector as all key metrics displayed positive measures for the period.  Monthly absorption of almost 3,000 units paved way for a 1.3 basis point increase in metro area occupancy and over a 2.0 basis point increase in Class A occupancy.  Rents per unit and per square foot continued their climb across all classes of product, lead primarily by strong increases in Class A properties.  However, seasonality played a major role in the August surge and the elevated supply pipeline remains a concern.

Austin apartment market occupancy increased 1.32 points in August to 90.01% but has fallen 2.70 points since August 2008.  Average rent per square foot has increased $0.003 to $0.983 during the month, but has declined $0.003 psf over the past 12 months.  Average rent per unit posted a significant increase of $2.81 in August; currently at $825.07, rent per unit is up $3.73 over the past year.  Austin posted a very positive absorption of 2,784 units in August, bringing annual absorption to 1,658 units.

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