Home > multifamily, New Construction, Uncategorized > Austin apartment growth on fast track, but other cities even stronger

Austin apartment growth on fast track, but other cities even stronger

Only five other major U.S. cities have more apartments under construction than Austin and all of them are much larger cities, including Dallas and Houston.

River View Apartments

Patrick Yu-wen Wong  –     The River View Apartments near I-35 and East Riverside Drive were delivered recently, along with thousands of other units across Austin. Many more apartments are under construction.

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According to the latest multifamily research published by Jones Lang LaSalle, there are 11,910 units being built in Austin compared with 23,651 in Dallas — the most of any major city.

Dallas is followed by Washington D.C. with 22,938, Houston with 18,861, Los Angeles with 14,918 and San Francisco with 14,167.

Austin also has delivered a significant amount of new apartments in the past 12 months, along with Seattle, New York, Denver, Charlotte, N.C., and Nashville, Tenn.

Based on 2017 projections published in the JLL report, Austin should be the No. 1 ranked city for annual job growth and the No. 2 city for household growth — both of which bode well for multifamily development and investment.

Still, there’s concern that Austin may be delivering more product than ultimately can be absorbed, at least initially.

In terms of the investment landscape, Austin ranked 13th in 2013 with $2.2 billion in apartment sales, a slight drop from 2012. New York, by far, had the strongest velocity of investment sales with $14.1 billion transacted. New York was followed by Washington, Los Angeles, Dallas, Houston, San Francisco, Atlanta, Phoenix, Seattle and Boston rounding out the top 10.

Though occupancy is strong in Austin at 95.6 percent, it’s still tight enough to rank in the top 10. The tightest markets are New York, San Diego, San Jose and Portland with occupancy above 97 percent.

Rents are rising the fastest in Seattle with an annual rent growth of 7 percent. Nashville comes in second at 4.8 percent. Fortunately for Austin renters, the city did not land in the top 10 for rent growth.

by Jan Buchholz – Staff Writer- Austin Business Journal

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