Increasing Supply of Apartments Keep Rent Growth Down in Austin

A recent article in the Austin American Statesman addressed the supply and demand of the Austin apartment market. The Apartment market in Austin is one of the strongest in the nation with an occupancy projected to be about 95.5 percent for the year. That number is practically full occupancy, and would lead one to believe there is a lack of supply. However, 14,500 units have been finished or are about to be completed by year end and an additional 8,700 units are predicted to come into the market next year. Now, one might ask how can all these units be filling up? Well, there is high demand for apartments in the area with a 2.6 percent increase to 20-30 year olds. A good aspect of this increased supply is that finally rents are starting to slow down a bit. Rent growth rates have slowed from 4.8 percent last year to 3.6 percent this year.  Still, Austin is an extremely strong market and plans to absorb all the supply with the growth of its high tech companies and its inviting culture for millenials. Only time will tell now how much more supply Austin’s apartment market can handle but one would think that the sky may be the limit.

Read more at Austin American-Statesman