Austin’s Rental Market Sees a 37% Drop in Apartment Construction This Year
- Texas has the most metros in the Top 20, and we’re talking of course about the Fantastic Four: right on New York’s tail, Dallas-Fort Worth takes silver with almost 25,000 new units, Houston grabs 3rd place with approx. 18,000 apartments, while Austin and San Antonio land at No. 13 and No.14 respectively, each with over 7,400 rentals.
- The 7,435 new apartments that are expected to hit the Austin market this year mark a 37% decrease compared to 2016, when almost 11,900 new units saw the light of day.
- The high number of completions has kept rates in check so far, with rents in the metro decreasing 0.3% Y-o-Y to reach $1,270, but for how long? Although Austin now has one of the lowest occupancy rates of the Top 20 metros (94.5%), it also features a strong employment sector with a reassuring 2.8% job growth. Moreover, people are moving to Austin in droves, making it the 3rd fastest growing metro in the country, with a 2.9% population change.
According to Yardi Matrix senior analyst Doug Ressler, all this new construction may well work in the renters’ favor, at least in the near future : “With more units on the table, renters may be able to get some discounts and concessions on new leases, including one month of free rent, waived move-in fees, and free gym memberships.”
Article is being reprinted with permission from the author courtesy of RentCafe. Original article can be found at the following link: https://www.rentcafe.com/blog/rental-market/us-apartment-construction-at-a-20-year-high-in-2017/