Wednesday, October 29, 2014
Austin's apartment market is still super hot, but with nearly 18,000 units under construction, rents could start to cool off soon. It could also mean the return of incentives to get renters into apartments, as the Austin Business Journal reports.
The large number of apartments that will be flooding the market in the next two quarters, which are usually slow for the apartment business, will create some market competition leading to price adjustments, concessions, and locator incentives.
Market analysts are especially concerned about the 8,000 units that are going to begin construction in the next 180 days.
The most expensive sub-market in town is Austin's Central Business District with rent averaging $2.46 per square foot. That's expected to go even higher when The Bowie opens, where rent is more than $9,100 a month for 3 bedroom units. 448 square foot studios start at $1,545 per month.
Occupancy rates are currently at 94.8 percent, down a percentage point from a year ago. Average rent is up to $1,070, compared to $1,007 in 2013 and rental rates are $1.26 per square foot versus $1.18 last year.