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In an update from the Texas Real Estat Center at Texas A&M, there's a pent-up demand in Austin's apartment market.
That could change soon, says Marcus & Millichap in the firm's second quarter 2012 Austin apartment market report.
According to the report, "tight conditions and rising rents have prompted a turnaround in Austin apartment development, with completions in 2012 expected to reach 3,000 units after slipping to a nearly 20-year low last year."
Other findings from the report:
â€¢ Rising job creation will support sufficient renter demand to offset this yearâ€™s spike in apartment completions. Overall, apartment vacancy in the Austin metro will decline 60 basis points in 2012 year to 4.3 percent.
â€¢ Asking rents will rise 4.2 percent in 2012 to $925 per month, while effective rents climb 5.6 percent to $851 per month. By year end, asking and effective rents will exceed previous peak levels recorded in late-2008 by 6.3 percent and 8.3 percent, respectively.
"The combination of low vacancy and above-average rent growth will continue to attract apartment investors to Austin this year," the report says.